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EA contraction trades are tough right now because IV expansion ain't what it used to be. I'm looking for minimal IV expansion in the Nov's to make this AAPL trade work. Will not roll it into a EA contraction trade for 10/19 If you're looking for a decent EA trade look at FDO. Using 39%...

AAPL earnings on 10/19 amc. Oct series expires on 10/16. Interesting set up for an earnings IV expansion trade with long Nov. strikes hedged with short Oct. strikes. Looking at dbl ratioed calendars at either the 200/170, 195/175, or 190/180 strikes. Projecting IV expansion on the Nov...

Probably shouldn't get in the middle of this but the poster asking the question was talking about CRBs (calendar ratioed backspreads). I think you're looking at double RC's. I think the 15 bps differential for CRBs doesn't work. In fact, I haven't found anything yet that remotely works for CRBs.

lol! Some how I think that "specific poster" will survive. Congrats on 2008. Nothing special for me last year. But, 2009 so far ---- whoa baby!

So Born is IV Trader? I wonder who else is here from the old Yahoo board under a different ID? lolol! I thought about his IV expansion trade strategy last year as IV was going thru the roof. At first, I thought he making a fortune --- and probably still did. But it must have been a...

OptionVue has gotten better over the years with their historical data but there is still a lot of holes in it --- in particular how to treat the b/a option spread. If you want to test this trading idea, or variations thereof, the best way is paper trade current possible positions and be...

lol! No, it certainly is not. Nirvana refers to the hapless search for a reasonably priced risk graph (P&L) software package which allows IV adjustments for individual legs and multiple risk graphics over time. Anyway if you know of a stock that is/was trading at $165+ on 9/1 with pre-event...

Hmmmmmm. Still looking for nirvana? lol! What is the hell is CRB stock at $165+?

Okay. An earnings event play. INFY on Friday. Unbalanced double calendars at the 35 strike. Makes little sense trying to execute the spreads because of the wide b/a. Must leg in. You're looking for a spread differential of 80 cts or less between months. Can also do the trade as a single...

BRK/B options started trading this week. Not a lost of interest so far. lol!

There are many barrier's of entry for the small investor. First, you'd have to construct a zero-coupon curve to properly value the interest rate component of the bond. It's particular tough when there are little if any market traded instruments over the interest rate curve of the company...

Huh? :cool:

Both the CBOE & OIC (888-OPTIONS) have fee risk graph software but I believe they are limited to 4 legs. There are other limitations as well but it has been a few years since I last used their software so I've forgotten the details. Peter Hoadley has a moderately price software package (<...

Check out the CBOE & OIC (888-OPTIONS) websites. There is a wealth of free info on options from basic to advanced. They have seminars online and, periodically, in large metropolitan areas.

Didn't save my risk graph with the Jun 85C so I've forgotten the difference between it and the using Jun 80C as the additional gamma hedge. However, I'm not going to argue with the person who taught me the "kicker" concept. lol! I also picked the 80C because I had a bias to the upside on the...

Tough to give results in a spread format because of the long Jun 80Cs and the extra Jul puts. Closed out the position with avg IV (p&c) in the 53.5% range. Profit of $2,412 less comm. Left 10% on the table because IV has dropped currently to an avg of 52%. The basic 75 put calendar was a...

No problem + is long, - is short +27 Jun 90C 0.78 -27 JuL 90C 2.45 +27 Jun 65P 0.33 - 30 Jul 65P 1.64 + 3 Jun 80C 3.35 All positions put on with stock trading between 77.75-78.50 (approx.) The Jun 80Cs were placed to even out the higher gamma risk if the underlying moved...

"Those 65/90 calendars couldn't be had for much of a credit. In any event, RIMM closed AH where it traded in the regular session." On the basic 90/65 dbl RC, the credit was $2.98. Not great but workable. I was checking IV during the day and you could have gotten around $3.10 in the early...

No free lunch. If the expected drop in the far month IV does not materialize as expected, the risk graph B/E line shifts upward and your expected return can/is reduced substantially. An upside to the position is the ability to trade the naked strangle after the short month positions are...

Might be a little late with IV dropping the last hour but look at some dbl RV Cal for RIMM. I put on a 90c/65p dbl RV unbalanced on the put side by a ratio of 10:9 with a long 80c kicker. Assuming July IV drop to 50% after earnings release.