Learn to master Calendar Spreads, an effective non-directional strategy that leverages time decay and volatility for optimal trading results.
This course dives into the world of Calendar spreads, a fun and dynamic trading strategy that deals with options. You’ll learn how to set them up, their unique characteristics, and how to manage trades, especially when things get a bit rocky. It’s all about keeping your cool!
Calendar spreads (aka "Time Spreads" or "Horizontal Spreads") are an effective Time decay and non-directional strategy.
MASTER CALENDAR SPREADS
Calendars Spreads are popular trades and come under the category of Time spreads. In a Calendar spread, we sell the front month Option series and buy the back month Option. The Calendar is generally constructed at the money, however, you can create bullish or bearish variations. It starts out as a delta neutral but can quickly move into a biased position. The Calendar is also one of the few strategies that is a Theta positive and a Vega positive trade. Because it is Vega positive, your Calendar will do better if Volatility increases after you put the trade on. The primary method of profit in Calendar Spread Strategy is to take advantage of a higher level of time decay in the front month. We put a Calendar trade on the GLD, and this quickly turns into a Double Calendar when price moves too much in one direction. In fact, this trade is an absolute roller-coaster and you will learn a very valuable lesson - Don't give up on your losers. If you simply close your losers and move on to the next trade, you will make the same mistakes and lose again. Fight your losers and turn them back into a break-even and you would have never felt better with a trade.
What you can expect
Why is the Calendar spread trade a unique trade in the Options playbook
How do we conceptualize Options from two different expiry series
What does Vega positive and Theta positive mean
What danger points should we watch for in Calendars
What are the popular adjustments for Calendars
Why can a Calendar sometimes become a directional position
Why are time spreads a little hard to adjust
What is the first and simplest adjustment to a Calendar Spread Strategy
What are the advantages of a double calendar
How should we deal with a trade in serious trouble
Why are exact profit and loss calculations difficult to calculate
Master the art of putting on Calendar spreads
Learn why Calendar spreads are unique with its Greeks
When does the Calendar spread get into trouble
7 Lectures
Knowledge. Strategy. Execution.   Hari Swaminathan is the founder of OptionTiger, a cutting-edge Options mentoring company, and a full-circle educator in all areas of Financial Markets, Hari has developed several proprietary Intellectual Property "methods and approaches" around enhancing base case Options strategies (which favor the Market Makers) and turns that deficit into a massive EDGE on the trader's side.Hari has a...
Not enough course material
This course on calendar spreads was explained very well from the basics to its application, and to its adjustments. Even though the example in this course is on a GLD trade only, but he goes through adjustments and his thought processes on what to do next. It's a short course, so revision is also easier.
Very informative
Interesting case study
Its quite easy to understand.
Must see this trade awesome!
Another good course.
Yes, and I appreciated how the trade ran into a few surprises. I would say, though, that, while the surprises along the way were instructional, it would have been nice to see a typical, boring calendar trade play itself out, to get a sense of what a calendar trade usually involves. But this would have also made the course a lot longer, so maybe this wasn't possible.
It offers a good overview of the overall calendar spread but falls short on the adjustment side. Only one kind of adjustment has been covered which is not always the right approach. Secondly, the selection of strike OTM, ATM, ITM for making the spread should have been captured to make it more comprehensive.
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Edward F.
Clear, informative and well presented