Calendar secrets :-)

ffs1001 said:
Profitable Trader : "Oh yeah, sure earth_imperator, the big secret to trading calendars is......"

Do you really think someone will reveal their secret sauce, esp to a person who doesn't even know the basics of options?

Even if they told you their secret, do you think you would know how to set up a suitable trade?


The funny thing is, as soon as I saw the title of the thread, I knew who the author would be.
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Do you have anything to contribute to this thread, or generally?
This forum is for discussions of questions, ideas and possible discoveries, not only for exchanging 100% already proven facts.
Just piss off if you are not interessted in this thread.
 
earth_imperator said:
Do you have anything to contribute to this thread, or generally?
This forum is for discussions of questions, ideas and possible discoveries, not only for exchanging 100% already proven facts.
More...

So, why don't you lead by example then? Why not disclose what you know about calendars, rathe than asking other people for their secrets?
 
ffs1001 said:
So, why don't you lead by example then? Why not disclose what you know about calendars, rathe than asking other people for their secrets?
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B/c I'm not sure about my discovery. As already said: maybe it's just a well known old hat with calendars.
Just asking those who might know.
And: as said: unverified yet, even by myself.
And: what if it's indeed true?... I doubt it would be a good idea to post it... :)
I'll decide when I've fully tested it first.
 
earth_imperator said:
B/c I'm not sure about my discovery. As already said: maybe it's just a well known old hat with calendars.
Just asking those who might know.
And: as said: unverified yet, even by myself.
And: what if it's indeed true?... I doubt it would be a good idea to post it... :)
I'll decide when I've fully tested it first.
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I don't know anything about calendars, nor options. Lot's still to discover.
 
I'll shortly post a data set for testing...
Ok, here is it:

Below are 2 alternative Put spreads (each with 2 legs).
The ShortPut is the same in both.
The LongPut differs (DTE=60 vs. DTE=90).
We will keep the whole position only till the shorter expiration date (ie. DTE=60 of the ShortPut).

Can you calculate which of the spread trades is better?
Ie. which one gives a higher PnL%?
Code: 
Spot=100.00

1) Vertical spread:
  ShortPut: DTE=60.00 K=100.00 IV=150.00 (Pr=23.8934)
  LongPut:  DTE=60.00 K=90.00  IV=150.00 (Pr=18.0278)

2) Calendar (horizontal) spread:
  ShortPut: DTE=60.00 K=100.00 IV=150.00 (Pr=23.8934)
  LongPut:  DTE=90.00 K=90.00  IV=150.00 (Pr=22.8528)

My preliminary calc (using a simulation of a cash acct w/o spread trading permission) says that the calendar spread gives at least twice better PnL% over the vertical spread.
IMO it should give similar advantage also with any margin acct.
 
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earth_imperator said:
B/c I'm not sure about my discovery. As already said: maybe it's just a well known old hat with calendars.
Just asking those who might know.
And: as said: unverified yet, even by myself.
And: what if it's indeed true?... I doubt it would be a good idea to post it... :)
I'll decide when I've fully tested it first.
More...

There you go.....you've proved my point. You really are clueless - and I'm not talking about your options knowledge, or lack of. You're basic social skills are those of a Moroccan goat.

You think you've discovered an amazing secret, and you think you can come here and humble brag about it, but you don't want to mention it, in case it's
(1) such a basic thing that everyone will laugh at you or
(2) it's such an earth-shattering discovery that you think others may steal your idea.

However, you have no problems in asking others to post their tips and learnings.
 
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