Long Calendars--High Front IV

Quote from daniel5198:

Cluseau
how do you set up them cals? OTM, ATM or ITM ?
i'd guess OTM. .. towards your directional bias... but please tell us...
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Depends on the outlook and which options (Calendars) offer the best risk/reward/probability.

For stocks such as ISRG, trading around $100 the day before earnings, my position was a $115 Call Calendar and a $90 Put Calendar.

For stock like EBAY it was a Double Calendar at $30, YHOO the $27.5 Put Cal.

So, it really depends on the outlook after earnings and what is available at the best time prior to earnings. I tend to stay closer to the money on most.

This week all the Calendars will be OTM --since i don't want any assignment risk.

Please feel free to expand on any setups. I will also post a live trade this week so we can review it together.
 
Quote from Cluseau:

GRMN $52.71

$55/$50 Dbl. Calendar Feb/Mar ratioed 4:5

Call side cost $0.68
Put side cost $0.53

Will post my exit.
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Call Calendar exit @$1.25

Holding Put Calendar into/through Feb expiry.
 
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