Calendar Spreads

RichardRimes · Jul 24, 2006

Quote from RichardRimes:
7/22
woke up middle of nite and unable to go back to sleep thinking of OIH. When that happens I have too much at risk in one position so have decided to sell 5 longs. Then depending on what OIH does look at selling the Aug 140 calls creating a diagonal and because it would not add any additional maintanene requirements sell the 125/115 Aug Put spread.

I can not tell right now whether I am just early or wrong or both. If in the next 4 weeks OIH continues to tank then I am both and will get completely out.

I need to remember that call calendars are often tougher than put calendars to handle.

Today:

STC 5 OIH Jan 150 calls @ 6.80 debt
STO (20)140Aug ..credit 2.75
STO (20) 125/115Putspread credit 2.15

did this before the OIH pop so made a little with the put spread and lost with the 140. we'll se how Aug goes...

RichardRimes · Jul 25, 2006

rolled the 140 Aug short calls to 145 sept calls for .45 credit. I'll let the put spread ride for awhile eat up theta

RichardRimes · Jul 28, 2006

due to Chewbacca's foray into options I looked at XLE and decided to try a put calendar on this.
7/27
BTO Dec 55P -2.3
STO Sep 55P +1.05

net debt 1.25

nlslax · Jul 28, 2006

Quote from RichardRimes:

due to Chewbacca's foray into options I looked at XLE and decided to try a put calendar on this.
7/27
BTO Dec 55P -2.3
STO Sep 55P +1.05

net debt 1.25

I've been bidding the XLE SEP 58/AUG 58 Calls at $.85 since yesterday.

Also got the AUG/SEP VIX 15 Calls @ .85. Gone ITM on that one.

RichardRimes · Jul 28, 2006

you should be filled this am...I'm seeing mid at .80

I was really hoping VIX would drop below 14 yesterday...was very interested in the Sept 12.5 puts to sell. Perhaps today

nlslax · Jul 28, 2006

Quote from RichardRimes:

you should be filled this am...I'm seeing mid at .80

I was really hoping VIX would drop below 14 yesterday...was very interested in the Sept 12.5 puts to sell. Perhaps today

I see it. The ASK was at .85 for a while yesterday, just didn't get done.

nlslax · Jul 28, 2006

Still bidding SMH AUG/NOV 30 PUT @ 0.85 since yesterday.
Getting close, but no cigar.

nlslax · Jul 28, 2006

Quote from nlslax:

I've been bidding the XLE SEP 58/AUG 58 Calls at $.85 since yesterday.

Also got the AUG/SEP VIX 15 Calls @ .85. Gone ITM on that one.

EDIT: VIX Entry was at .80 - I feel better now.

RichardRimes · Jul 28, 2006

Quote from nlslax:

EDIT: VIX Entry was at .80 - I feel better now.

actually sept 15's on the VIX are very interesting...selling a spread 15/12.5 (put) might get 1.25...hummmm

nlslax · Jul 28, 2006

Quote from RichardRimes:

actually sept 15's on the VIX are very interesting...selling a spread 15/12.5 (put) might get 1.25...hummmm

Nice, 1:1 ratio.

Don't know why, but credit spreads cause me alot more angst than the long calendars do. And I have CTM calendars now on RUT & NDX.