Long Calendars--High Front IV

Discussion in 'Options' started by Boy Plunger, Feb 11, 2007.

  1. Depends on the outlook and which options (Calendars) offer the best risk/reward/probability.

    For stocks such as ISRG, trading around $100 the day before earnings, my position was a $115 Call Calendar and a $90 Put Calendar.

    For stock like EBAY it was a Double Calendar at $30, YHOO the $27.5 Put Cal.

    So, it really depends on the outlook after earnings and what is available at the best time prior to earnings. I tend to stay closer to the money on most.

    This week all the Calendars will be OTM --since i don't want any assignment risk.

    Please feel free to expand on any setups. I will also post a live trade this week so we can review it together.
     
    #11     Feb 12, 2007
  2. GRMN $52.71

    $55/$50 Dbl. Calendar Feb/Mar ratioed 4:5

    Call side cost $0.68
    Put side cost $0.53

    Will post my exit.
     
    #12     Feb 13, 2007
  3. Call Calendar exit @$1.25

    Holding Put Calendar into/through Feb expiry.
     
    #13     Feb 14, 2007