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I really don't understand this section. The calendar call spread ought not have unlimited upside risk. If underlying went up a lot, you would be exercised so the next step to exercise your LEAP. Even if it resulted loss because of the difference between the two strike, you wouldn't have...

Hi, I'll transfer $5000, maybe it's enough to begin trading. But I have some problems because of not having trading experience. For example I don't know what happen if I'm exercised and, after this, I don't buy the stocks or exercise my LEAP call immediately. It may happen, because I...

Thanks MTE, I'll ask IB for details. I can afford to buy cheaper stocks but I'd like to invest in more instuments with leverage. However I think if I allow the LEAP to be exercised, the leverage conception will break off.

Hi, I'm a beginner and next week I'll try to begin trading at IB with a margin account. I don't have too many funds to buy several contracts for covered call writing, so I want to set up Long Calendar Spreads with call options, but I'd like to be sure how margin works for this spread...

An example... Let's assume that the underlying stock was at $34,5 and I've sold one 35 put for $1 (ITM) and simultaneously bought one long-timed 35 put for $6. Two weeks later the stock price fell to $32 so I was excersized so I was obligated to buy 100 shares of the underlying stock for $35...

How do you calculate the profit per spread? You didn't report how many stocks to long ES and to short ER. :confused: