Short Calendar Spreads on Equities

Discussion in 'Options' started by panzerman, Aug 19, 2006.

  1. Short Calendar spreads seem to have alot of the characteristics that suite my trading style. However, when I look at equity spreads with say 3-6 months left (for both contracts), the spreads don't seem much more than .05-0.20, even when IV is relatively high.

    What is reasonable to expect for a credit when putting on these kinds of spreads? Should I be looking out further in time between expiration months, or look at indexes as the underlying? I only want to put on these spreads when IV spikes, and indexes haven't had alot of IV lately.