Recent content by BobJones

It is just a mix of math and word problems, and finding patterns.

That's absolutely true, and of course every situation is unique and generalizing can get you into trouble...but the originally question seemed generally with no prices or IV provided

Calenders produce less risk than verticals or strangles, and he was looking to make a volatility play not a movement play. DD had earnings yesterday the long call calender cost about .40 to sell the call vertical you would have had 1.55 worth of risk. that's a difference in risk of a 1.15 per...

I use this spread a lot around earnings. I usually put on the out of the money call and put calender. One thing i would make sure of is that they back month vol hasn't been pushed up a lot with the front month or you may not make as much as you thought. Calenders generally present much...

Sounds like what your taking about is changes in implied volatility. Before an earnings report the anticipation of a large move usually pushed the premiums up as traders buy options. Then after earnings are announced you generally see the premiums drop as the likely hood of a large move is over.

I have been experimenting with putting on Iron Butterflies in high volatility stocks. The risk/reward characteristics of these spreads seem pretty hard to beat. I was wondering if this is a strategy others have tried. Ex: In RMBS you could sell the 25-23-21 Iron butterfly for 1.80 by...