My calendars are looking cool blue. Not even 10% of the stomach tightening as my CS positions give me. Was in a TOS seminar a few days ago and one of the presenters (JJ) said that many pro's who do IC's use long calendars to hedge. FWIW
Most likely Syria, I'm sure they are next on the list. It's probobly more like Lend/Lease as opposed to selling.
Where are you putting the calendar strikes in relation to your IC short strikes? EDIT: I am sorry, where would TOS put the calendar strikes in relation to the short IC strikes
In the example they gave, the calendars were placed at the long strikes using the SPY's. They discussed OTM CS's, but I'm thinking with FOTM CS's the calendars would be more effective at or near the short strike.
vertical + calendar as described at long strike = diagonal I suppose SPX vertical and SPY calendar allows fine tuning the vega exposure/ratio due to the granularity offered by SPY contract size vs SPX etc. but questionable merits. What am I missing/misunderstanding? Is it just a variation on the theme of tailoring the short gamma/long vega mix as appropriate to one's personal risk appetite and forecasted market conditions? MoMoney.
Group; I have 140 JUL 640/650 Bull Put Spread @$.4 credit. Could you folks please offer an opinion for constructing a hedge. If I should, how? Thanks, Bob