I have 2 AMD calendars one 37.5 and a 32.5 Apr/Jul puts...the 37.5 rolled for either .25 or .30 don't know yet and haven't rolled the 32.5 yet. I'll do that next week after all the time premium is squeezed out of it. i've had the 37.5 on for awhile (since after Mar exp) not sure yet if I'm going to make money on it!
Calendar Spreads
- Thread starter gatorplease
- Start date
I have 2 AMD calendars one 37.5 and a 32.5 Apr/Jul puts...the 37.5 rolled for either .25 or .30 don't know yet and haven't rolled the 32.5 yet. I'll do that next week after all the time premium is squeezed out of it. i've had the 37.5 on for awhile (since after Mar exp) not sure yet if I'm going to make money on it!
i was able to roll one set of 37.5 to may for .25. The other set of 37.7 I need to look at over the weekend and possibly close the cal. I think I have a profit in it if I close...if not I'll roll or possibly go diagonal. I really need to learn to ratio the calendar with more longs when I do have a bullish or bearish bias. I need to look and see what my % of calls on stocks are right. so much to learn so little time to study
Would like some opinions on this please. I entered the following calendar spreads this week. Lately I have been doing vertical credit spreads but couldn't resist the volitility difference in the apr TIVO calls and the aug.
BTO 20 aug TIVO 7.50 calls @ 1.80
STO 20 apr TIVO 7.50 calls @ 1.15
TIVO was at I believe 8.05 or so at the time.
The imp. vol. was about 173% for apr. and about 68% for aug.
My plan is to capture time prem in apr then may etc.
TIVO won there lawsuit and after hours the stock went to about 10. If the stock continues up and I do nothing I will get assigned. I figured under this scenario I could then sell puts aginst the short stock and still keep the aug calls. However it is my understanding that the stock is hard to borrow and that means i risk being taken out of the short by the broker and i don't want naked puts. I am leaning towards buying back the short calls and selling the next strike up otm to capture time premium. Would like to know what some of you would do and your reasoning why. Thanks for letting me pick your brains on this.
T
BTO 20 aug TIVO 7.50 calls @ 1.80
STO 20 apr TIVO 7.50 calls @ 1.15
TIVO was at I believe 8.05 or so at the time.
The imp. vol. was about 173% for apr. and about 68% for aug.
My plan is to capture time prem in apr then may etc.
TIVO won there lawsuit and after hours the stock went to about 10. If the stock continues up and I do nothing I will get assigned. I figured under this scenario I could then sell puts aginst the short stock and still keep the aug calls. However it is my understanding that the stock is hard to borrow and that means i risk being taken out of the short by the broker and i don't want naked puts. I am leaning towards buying back the short calls and selling the next strike up otm to capture time premium. Would like to know what some of you would do and your reasoning why. Thanks for letting me pick your brains on this.
T
Your time spread is going to cause pain. The loss from gamma in the move to 10 outweighs the gains from skew. I'll never understand the need to avoid booking a loss. There is no such thing as a repair strategy. It's not a 1986 Buick. Take the loss and move on -- the aggregate vol-drop on the news and gamma risk is > the skew edge; which is no edge at all.
Has anyone had experience with Chartbenders Real-Time IV Top 20 scans? I saw a mention of it on one for the Yahoo forums.
I look for front month credits that pay for at least half of the long month's cost w/<30 days to exp of the front month. Their calendar scans look interesting as a starting place for possible calendars trades.
As always, any feedback is appreciated.
I look for front month credits that pay for at least half of the long month's cost w/<30 days to exp of the front month. Their calendar scans look interesting as a starting place for possible calendars trades.
As always, any feedback is appreciated.
can't help you on chartbenders
AMD...although not really part of my public journaling Thought I'd share for learning purposes...
Initially opened Jul/Mar diag 37.5 Jul put long/40Mar put short at a cost of 1.60 on 2/27 Mar 8th rolled to a 37.5 april/Jul cal for an add .15
Today caught in the squeez the stock of course has pretty much been in free fall and trying to roll with the 37.5 now at full delta's
got assigned 100sh of stock and decided to just buy back the remainder 19 contracts. Stock opened higher but as soon as I went to buy back the contracts it of course dropped and cost me 5.70...I probably shouldn't have bought but didn't want to get assigned all 1900 shares (also didn't have enough cash to buy back 1900)...still have my longs and if the stock drifts down this week may be able to at least roll to May for something.
the only good thing I did was when I saw the stock going down strongly..on Mar 31 opened another cal...JUL/APR 32.5 for 1.50 and this one looks reasonably promising
will roll the apr short to may later this week as there is still time prem in it.
AMD...although not really part of my public journaling Thought I'd share for learning purposes...
Initially opened Jul/Mar diag 37.5 Jul put long/40Mar put short at a cost of 1.60 on 2/27 Mar 8th rolled to a 37.5 april/Jul cal for an add .15
Today caught in the squeez the stock of course has pretty much been in free fall and trying to roll with the 37.5 now at full delta's
got assigned 100sh of stock and decided to just buy back the remainder 19 contracts. Stock opened higher but as soon as I went to buy back the contracts it of course dropped and cost me 5.70...I probably shouldn't have bought but didn't want to get assigned all 1900 shares (also didn't have enough cash to buy back 1900)...still have my longs and if the stock drifts down this week may be able to at least roll to May for something.
the only good thing I did was when I saw the stock going down strongly..on Mar 31 opened another cal...JUL/APR 32.5 for 1.50 and this one looks reasonably promising
will roll the apr short to may later this week as there is still time prem in it.ended up legging out for a really lousy dime on the 37.5AMD put cal roll...however did get .60 for the roll of the 32.5 so I should be ok on that one.
yep
Yahoo has earning announcement today afternoon.
The IV on APR 30 put is 91% and MAY 30 put is 42%. I projected both of them to be about 35% after earning. The APR 30 put is at $0.75 and May 30 put is at $1.05. The calendar APR/MAY 30 put calendar is about $0.30. The profit zone is yhoo between $27.69 to $32.95.
The APR/MAY 27.5 put cal is about $0.20 and the profit zone yhoo between $24.78 to $31.07
I planned to do either 30 or 27.5 calendar. Are there any reasons not to do that beside that yhoo may move out of profit zone.
-Nick
The IV on APR 30 put is 91% and MAY 30 put is 42%. I projected both of them to be about 35% after earning. The APR 30 put is at $0.75 and May 30 put is at $1.05. The calendar APR/MAY 30 put calendar is about $0.30. The profit zone is yhoo between $27.69 to $32.95.
The APR/MAY 27.5 put cal is about $0.20 and the profit zone yhoo between $24.78 to $31.07
I planned to do either 30 or 27.5 calendar. Are there any reasons not to do that beside that yhoo may move out of profit zone.
-Nick