what strategy is this?

B

buybig

looked @ my reference sources and may of missed. what strategy is this?

sell near + 1 or 2 strikes call

buy far (3-6mos) strike call

equal ratio debit spread

sounds like a calender but strikes are not same.. could be a diagional but see above..

could be smoking crack and missed it!:cool:
 
could you be more specific...

as in xyz trading @ 50

- 10 Jan 55 call + 10 Apr 65 call

or -8 Jan 60 call +20 Apr 70 call

diagonals (if that is what it is) can be done for a credit or debit depending on how far apart the credit/debit strikes are
 
Quote from RichardRimes:

could you be more specific...

as in xyz trading @ 50

- 10 Jan 55 call + 10 Apr 65 call

or -8 Jan 60 call +20 Apr 70 call

diagonals (if that is what it is) can be done for a credit or debit depending on how far apart the credit/debit strikes are
More...

sorry for being vague..

underlying @ 50

buy 50 three months out

sell 55 front month

not a ratio trade..

i suspect its a form of calender.

debit calender?

thought calenders were matching strikes..
 
Quote from snugglepuppy666:

sorry for being vague..

underlying @ 50

buy 50 three months out

sell 55 front month

not a ratio trade..

i suspect its a form of calender.

debit calender?

thought calenders were matching strikes..
More...
Is this really troubling you?
 
Quote from timbo:

Is this really troubling you?
More...

ummm.. no.. why:confused:

just curious..

is it a strategy that contradicts text book gospel?

why waste time responding w/o an answer?:confused:

do you have an answer :eek:

:D
 
Quote from snugglepuppy666:

sorry for being vague..

underlying @ 50

buy 50 three months out

sell 55 front month

not a ratio trade..

i suspect its a form of calender.

debit calender?

thought calenders were matching strikes..
More...

its simply a diagonal...a diagonal is a calendarized vertical spread...again depending on the volatility could be done for either a debit or credit. If only a 5 pt spread then most likely a debt. Calendars ARE matching strikes. Diagonal's are different strikes, different months
 
Quote from RichardRimes:

its simply a diagonal...a diagonal is a calendarized vertical spread...again depending on the volatility could be done for either a debit or credit. If only a 5 pt spread then most likely a debt. Calendars ARE matching strikes. Diagonal's are different strikes, different months
More...

10-4 thanks for the help.

so to make sure i understand.

vertical = same month long and short call different strikes

calender = diff months w/ same strike long and short call

diagonal = diff months w/ different strikes long and short call
 
Quote from snugglepuppy666:

vertical = same month long and short call different strikes

calender = diff months w/ same strike long and short call

diagonal = diff months w/ different strikes long and short call
More...

Yes. A diagonal is both horizontal (time) and vertical (price).
 
Helpful hint -- Look at option quotes in a newspaper, rather than online, and it will be very clear why some trades are called diagonals and others are called verticals. Lawrence McMillan has a paperback studyguide that is helpful for learning the basics. I also recommend his book, Options as a Strategic Investment. Good luck with your trades.
 
You must log in or register to reply here.
Back
Top