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I jumped in on the AMD apr/may 35 in my virtual account. Just so I understand what you guys are thinking; You're waiting for the volatility to drop on the near month and then close the trade? Sorry for the dumb question :confused:

I've been doing a lot of research on the IC's as well. I'm playing with them in my virtual account & have had pretty good success. Then again, almost everything works great in my virtual account. :D

You're probably right, but I've only been doing this for about a year and I unfortunately managed to lose my A$$ the first 6 months to the tune of almost $20k mostly trying to swing trade equities & getting bit by things I didn't understand at the time. IV drop's, earnings suprises, etc...

Just an update on my LEAP calendar spread. I was able to sell both ends of it yesterday for a gain of .10 overall. Once I better understood the risk picture of that position I wasn't very comfortable with it. :confused: I feel I can put on spreads with the same profit potential with...

After doing a lot of digging & playing out different scenario's I will most certainly close out my LEAP after my MAR option's expire (hopefully worthless) :D I do like the idea of buying the APR/JUN after next friday & roll it to May. This is essentially the same thing I'm doing with my LEAP...

(Thinking out loud here) So essentially if IV stays the same then the numbers are correct, but if IV goes down the profit zone decreases. (volatility crush) If IV goes up then the profit zone potentially gets wider. btw, I appologize if these are stupid questions.

I'll be honest and tell you that I'm no where near that sophisticated. :) I pretty much buy a standard leap calendar spread and then sell the near term option with the highest premium (usually at the money) month after month. As the price moves around the spread will naturally be diagonal...

Thanks and I'd be more than happy to post my changes on my LEAP spread. As of right now, I don't want to do anything drastic becuase the bid/ask spread is a little painful on the LEAPS. So far it's doing as expected and I'm not losing money yet. :D I have been eyeballing the nearer term...

I agree with what your saying, but I'm sensing that not many of you are using LEAPS on your calendar spreads. from a calendar call/put perspective how far out do you typically buy your long postion? I actually do use TA a lot, but I'll admit that I usually use it to bias my spread slightly...

I posted about getting back into calendar spreads over on yahoo and Donna kindly pointed me to this thread. I can say that I have enjoyed reading through it and have learned quite a bit about using Put's versus Calls on Calendar spreads. I am a deciple of the Terry's Tip's calendar call...