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  1. J

    Calendar Collars

    If you can get the right prices, which is certainly feasible, combing an ITM with an OTM synthetic equivalent of the calendar collar seems to have BIG POTENTIAL, particularly if there's a 2 month gap between the front month and the back month!! Walt
  2. J

    Calendar Collars

    Spin... take a look at the synthetic equivalent of the calendar collar... i.e. reverse diagonal bear spread or reverse calendar... Walt
  3. J

    Reverse Calendar

    I like it... especially during times of high IV due to market capitulation... Walt
  4. J

    Calendar Collars

    Good points Spin... It's hard to argue with logic... I think this line of discussion may have opened some real possibilities for combining various strategies for a favorable risk:reward hedge. In other words, perhaps the calendar collar can be used to hedge against the DBWB or Short...
  5. J

    Calendar Collars

    I ran the numbers for a calendar collar, short strangle with long backspreads, & Double Broken Wing Butterfly (DBWB). I did the test on the S&P e-mini futures, which has a typical daily range of at least 10 points. I prefer the futures because of the favorable SPAN margin and the leverage...
  6. J

    Calendar Collars

    thanks for the invite John... If we're able to enhance a particular strategy and achieve consistent & exceptional profit objectives, I just may take you up on that offer. I appreciate the contributions and insights from John and Spin. We'll be watching how Google pans out. At some point...
  7. J

    Calendar Collars

    One of the challenges I have with the Double Broken Wing Butterfly is the fact that the break-even range is a fraction of the break-even range of a short strangle with ratio backspread wings FOTM. With a short strangle, the likelihood of a profit is better because it can handle a wider range of...
  8. J

    Options on E-mini S&P500

    yup... multiplier is 50... Also, understand that 1option contract obligates 1 futures contract. This is UNLIKE the equity market, where 1 option contract obligates 100 shares... Walt
  9. J

    Calendar Collars

    Btw... a 10% or 20% annualized return on capital is typically better than the s&p; however, the return can grow exponentially beyond 10% or 20% with futures and commodities. This is what makes this strategy so fasinating to me...
  10. J

    Calendar Collars

    There's an Optonetics article on "The lazy Stock Collar" where AAPL experienced a 13% decline in a 5 month period (from $70.29/sh to $60.72/sh); however, the trader was able to yield an increase of 4%. That's an annualized return of 10%. This was a standard collar, not a calendar collar...
  11. J

    Calendar Collars

    Hey Spindr0, Thanks for your feedback; however, I believe that a short strangle with long ratio wings or a backspread has a better risk:reward and win rate than the DBWB... but that's another thread...
  12. J

    Calendar Collars

    Hey John, I'd like to bounce the following adjustment to the calendar collar off you: Instead of buying a front month put (30 days from expiration) and selling a 60 day call, I would move all transactions an additional 30 days out. In other words, buy a 60 day put and sell a 90 day call...
  13. J

    Calendar Collars

    Thanks John, Likewise, I also appreciate your contributions. Despite the benefits of the Double Broken Wing Butterfly, I truly believe that the Calendar Collar (CC) has a better risk/reward profile... Ragarding the CC, I believe that the theta challenge is the bigger problem, as the Vega...
  14. J

    Calendar Collars

    Assuming that we all understand the potential benefits of a calendar collar, I'll like to focus on the potential problems/challenges of this strategy and the best ways to overcome them... Two major challenges: (1) the theta impact on the front month long option; (2) the adverse impact of a...
  15. J

    naked put selling study

    buy ratio long wings... Walt
  16. J

    Option income strategies

    You're right... however, "selling [almost] naked" and being protected against catastrophic fall works in most market conditions IF one is able to make TIMELY ADJUSTMENTS as needed. The proper timing of th adjustments is what will make or break this strategy... Regardless of the strategy, there...
  17. J

    Option income strategies

    No, I'm saying sell 5 550 puts, buy 10 450 puts. If you want to buy the 10 450 puts at no charge, it may be worth doing a backspread. With the backspread the put leg trades would be as follows: sell 5 550 puts, sell 3 450 puts, buy 10 430 puts. Walt
  18. J

    Option income strategies

    akivak, consider a wide spread with your ICs. If you treat the long wings as "black swan" protection by buying 2x long FOTM protection, I believe your gains would have been more than two times the return you've been experiencing with the ICs... Check it out and let me know if you...
  19. J

    How do you avoid time decay problem in option even you are right in the direction?

    calendar spread, which gives you positive vega & theta; however, you'll be negative gamma... No free lunch... Walt
  20. J

    Option income strategies

    Good Job Akivak, Your due diligence & tenacity are appreciated... Walt
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