no,I meant to compare two strategy:
1.Short call 30 days and long call 60 days
2.Short straddle 30 days and long straddle 60 days.
All the above ATM with 1.40 ratio for 60 days in both cases.
Close both positions at next exp.
So far I played this strategy for four months and made money...
run scenario for calls only vs. the straddle play.
Stock at 40 , IV at 30,short ONE month , long TWO month,ratio 1.40.
If month from now XYZ=36 calls only will lose big while straddle statedly will make money
what do you think about buying ATM leaps straddle and selling Current Month the same straddle(with ratio and preferably with some skew).
Other that rising IV , what can go wrong here?