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Long weekend does impact the pricing as the market makers adjust their quotes to reflect the long weekend decay, which essentially manifests itself in a drop in IV. A drop in IV does NOT mean that traders are getting bearish, it means that there's less demand for options. However, in this...

the OP said that the stock went UP not down!

You make it sound really complicated, when in fact, a bearish calendar spread is simply a calendar spread with the strike price below the current stock price.

OddTrader, Are you kidding around or are you seriously asking a question about a bearish calendar?

Checks are probably at the bottom of my list of things that I want from a broker, things like platform, execution and service are more important to me, but that's just me.

I'd say it's been pretty obvious from the beginning of this thread, but there seems to be some mystical power that prevents us from leaving it alone and not posting.:) I actually did pretty well from page 7 to 13 by staying away, but then got drawn back in.

First of all, is English your first language? If it is then, mate, you gotta learn to spell. I never said that the two calendars are not the same. They are the same and they are priced the same, but in order to see this you need to account for all the variables that affect the pricing. If you...

By the way, it's a hidden cost of carry to you only, to everyone else it's an obvious one.

You ask why make your life complicated by hedging, exercising? Without it you will never book the difference between the two as a profit, because the two calendars will never balance out. You obviously do NOT understand option pricing so this whole thread is a waste of time and effort in...

Are you absolutely sure there is no cost of carry in synthetics!? Cost of carry is composed of interest less dividends. However, let's assume this is an arb. To capture it you would buy the put calendar and sell the call calendar. For argument's sake, let's say that GOOG expires right at...

The difference between the two calendars is the cost of carry from Dec09 expiration to the Jan11.

No, it's not American vs European. It's regular vs quarterly. The symbols starting with "S" expire on the third Friday as normal. The Symbols starting with "R" expire at the end of the quarter (i.e. the last business day of the quarter).

All you need is a broker that provides pre/afterhours access to its clients. Just ask your current broker about it. If not then there are plenty of others who do. On a side note, stocks do NOT trade on Globex. Globex is only for futures and options on futures.

Both the front and back month calls and puts are at the same strike, so they are tied together by put-call parity. Hence the front month call and put will trade at the same IV, and the back month call and put will trade at the same IV. A volatility smile is completely irrelevant here.

I suggest you read up on Put-Call Parity before continuing your argument.

That's where I disagree with you. A put calendar is exactly the same bet as a call calendar at the same strike until the short option expires, what you decide to do after that is actually a new trade.

Stock trades take 3 days to settle no matter how you trade or in what account. A margin account just allows you not to worry about it. So if you want to day trade then you need a margin account. In order to satisfy the PDT rule you need to maintain 25K in your account at all times, it doesn't...

It depends on the stock and the day, but you can easily do 10% without market impact and sometimes you can do 50% or more. A limit order is one way, but you would definitely need to break it up, as mentioned previously, you could also use algos, such as VWAP, or on a discretionary basis, which...

Not following you. A put calendar is identical to the call calendar at the same strike price, period. What happens after the front month option expires is a completely new trade.

A call calendar is equivalent to a put calendar at the same strike, the jelly roll keeps them inline. So there's no real advantge to doing an ITM call calendar rather than an OTM put calendar. In fact, an OTM put calendar is likely to have less slippage.