$200 to $2million Calendar Spread Challenge

Scaled into a new position in $IWM this morning.

Put the available cash to work in two $IWM Mar/Feb 62 Put calendar spreads at .82 and .83 for a total cost of $170.08 after commissions. Still waiting on a fill on a third spread at .81. Will leave it working through the end of the day tomorrow. If I don't get my price, I'll pay up a little to get it.

Portfolio:
Cash: $88.24
Value of Positions: $165.00
Total Portfolio Value: $253.24

Stay tuned....
 
Quote from traderlux:

I have been doing put credit spreads on the SPY, so I want to compare your strategy and results to mine. I have looked at cal spreads but havent got to a comfort level with them.

One difference is with a credit spread if it does go entirely my way, I dont have to do any exit action, just let it expire.

With a cal debit spread some follow up action is allways needed.
Have you tried credit verticals and found cal spreads "better"?
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I've traded verticals before. My discomfort with them lies in the fact that you're basically making a directional market bet. And I've proven to myself that I'm no good at that.

Yes, I agree with you about the nice situation of possibly saving money on commissions due to letting worthless options expire.

In the end, one might not be any better than the other. Perhaps one small advantage of entering ATM Calendar spreads is the bid-ask spread might not be as wide since you're trading options at the current strike, as opposed to further out strikes? Just a thought....
 
Quote from denismartell:

Hey Sean: enjoying your journal. I am new to trading spreads and so it is interesting to see how you are managing your trades.

I liked the graphic you posted and am wondering what trading platform you are using. I am trading with IB and do not think they have the same quality of graphics.
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I trade on the thinkorswim platform and cannot recommend it enough.
 
Put the remaining cash to work today in $IWM one strike lower than the spreads we put on the other day.

Today, entered $IWM Mar/Feb 61 Put calendar @ .85 for a total cost of $87.54 after commissions. The initial profit target on this trade will be .99.

This used up practically all the remaining cash - there is only 70 cents left in the account. Perfect.

Let's see if we can make back the losses from last week....

Portfolio:
Open Positions: $247.00
Cash: $0.70
Total Value of Account: $247.70
 
My guess is that the poster experienced what happens to everyone who thinks they can make money with a system. It didnt work. I havent seen an option system that does work.
 
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