Calendar Spreads

You're right... the market has had a tendency to move slowly up over it's lifetime.

But take a look at the PPH index... it's been down trending for months now... and most securities within the index have responded accordingly... ie, PFE.

The problem with PPH now is.. that.. we're at support levels... for many of the securities within the PPH. So it's time to look for a new falling index. HOUSING?

After a while... you'll find it easier to find failing candidates.. than good ones.

Remember... just throwing a dart is 50/50. Get in the trend... and you really increase your odds.

M~
 
Donna,

PFE... just isn't much juice (premium) for doing a Call Calendar... but we'll keep looking. You could play it as a Calendar.. and scalp pullbacks with the short call position.

M~
 
what about wfmi as a put calendar? I do not believe the 70 p/e is warrented and think in the future there is real downside in this stock but haven't a clue how to play it....


Quote from Sailing:

Donna,

PFE... just isn't much juice (premium) for doing a Call Calendar... but we'll keep looking. You could play it as a Calendar.. and scalp pullbacks with the short call position.

M~
More...
 
Quote from DonnaV:

what about wfmi as a put calendar? I do not believe the 70 p/e is warrented and think in the future there is real downside in this stock but haven't a clue how to play it....
More...

Depending on how far you think the stock will drop and when, you might consider the Jan/Feb 135P at a debit of $2 (assumes a 10% drop).

If the stock drops and stays above $135 at Jan exp, it would be a sweet trade. Just sell the Feb call and treat yourself to dinner or hold it if you feel the stock will drop further.

:)
 
I knew what you meant :) thanks...I was looking at that...just don't know when...or if... the mkt will agree with me:p...I'm ALWAYS right of course...its that timing thing and of course the further out the larger the premium......

Quote from nlslax:

DUH - Sell the Feb PUT
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I try to do a Cal about 30 days out from the front month with a debit of $1.25 or less.

You're right, it's that direction/timing thing that can screw up the best laid plans.
 
I decided to give it a shot..Jan is abt 45 days and I don't think it will drop to 135 by then...however with earnings coming in Jan and by Feb people have spent their money on heat and less on expensive food:p...I think! so did the Jan/Feb put for debt 1.95

Quote from nlslax:

I try to do a Cal about 30 days out from the front month with a debit of $1.25 or less.

You're right, it's that direction/timing thing that can screw up the best laid plans.
More...
 
Placed an order for WMT Jan/Mar 50 Calls @ .80 debit.

Been watching it all day with the b/a at .75/.85

Thinking it would have traded quickly at .80
Probably will if market tanks.
 
It wasn't going...mid jumped to 2.10 so am trying 140 Jan/Feb for 2.35...will see if this goes

Quote from DonnaV:

I decided to give it a shot..Jan is abt 45 days and I don't think it will drop to 135 by then...however with earnings coming in Jan and by Feb people have spent their money on heat and less on expensive food:p...I think! so did the Jan/Feb put for debt 1.95
More...
 
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