Option Trading Strategy: Setting Up a Double Calendar
★ SUMMARY ★
Hey! It’s Sasha Evdakov founder of Rise2Learn and in this video I want to share with you how to trade a double calendar or at least that one up so that way you can now position it yourself on your own stock trade.
Now double calendar is very similar to a single calendar but it is two calendars rather than one so I want to go over exactly how to set one up and this is just a quick overview video it’s not indepth about adjustments or anything like that. Let me share with you exactly what it looks like first off and then afterwards I want to show you exactly how to do it in a trading program.
Now there are a lot of advantages with the double calendar because it gives you a lot of spread range for the trade. It allows your options to deteriorate a lot quicker at picking up your premium or making more on the premium.
There are a few advantages but unfortunately there are also disadvantages with everything that you get you have to give something which means you’re Vega position goes up a lot higher meaning you’re Vega risk is slightly higher.
Let me share with you exactly what I’m watching for when I set up a double calendar. Let’s take a look at the single calendar spread first before we get into the double calendar and if you didn’t watch the video about the single calendar position then you might want to watch that one first because it’s base foundation for the double calendar at but I do want to quickly recap the single calendar here.
Posted at: http://tradersfly.com/2014/05/option-trading-strategy-setting-double-calendar/
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there is a strategy I have seen which is a hybrid of calendar and vertical which works pretty well. so what you do is buy the front month but at a higher strike and sell the further month at a lower strike… I can't seem to find a video about this strategy online. what do you think about that Sasha?
Wonderful sir
Привет Саша! супер что ты делаешь такие видео)) подскажи пожалуйста на счет того с какими датами мы должны покупать или продавать календарный спрэд?
So you're saying not to keep the options you're selling till expiration date? I thought that was the whole point of spreads?
You start out pretty good, then you go riiiiiiiight over my head like a Sputnik. C'mon man. Explain the interplay between the greeks!
It would be helpful if you both define and explain the implications (if any)of terms like positive /negative vega…..
You mention that in one case one would use a butterfly , but in another one uses a calendar – why ?!?
how do can i get your news letter
I hope you'll do another weekly update, as the SPY formed a textbook island (top) reversal, while the VIX formed an island cluster (bottom) reversal, both confirmed today… I smell a correction this Spring/Summer, and a vid about capitalizing on a change in market sentiment might be helpful… thx again Sasha