Opening Double Calendar Feb/Mar 122 Puts 124 Calls
https://www.tradingview.com/chart/OsBXckpZ/#
for a debit of 1.20/contract.
At open, Theta 1.8 and Delta -1.65.
Chart 2 weeks per candle.
Bottom panel shows % move adjusted to approx. breakeven prices and the historic occurence % of those moves. Xs (top=up, bottom=down) plot for
each occurence and the red green lines show percentage for the selected number in the PriceMove indicator settings (published).
Using the guidelines of monthly move of less than $10 (Plus / Minus 10 shown in fuchsia ahead of last candle)
and (per TW platform analysis) ratio of > .5 (max profit)/debit at expiration
This looked okay, we will see. My mentor on these looks only nearer monthly expriation times so 20-30 dte on short leg and long 50-60 dte.
Placed an immediate 25% ($30) closing order and will watch closely as goal of 25-50% of debit.
Will shoot for higher % up to 50 when can watch it.
If price reaches a breakeven I add a calendar ATM if 10 dte remaining and if not, I take off the position.
Categories tricky for the way I trade but overall price movement and limits will fit into support and resistance.
for a debit of 1.20/contract.
At open, Theta 1.8 and Delta -1.65.
Chart 2 weeks per candle.
Bottom panel shows % move adjusted to approx. breakeven prices and the historic occurence % of those moves. Xs (top=up, bottom=down) plot for
each occurence and the red green lines show percentage for the selected number in the PriceMove indicator settings (published).
Using the guidelines of monthly move of less than $10 (Plus / Minus 10 shown in fuchsia ahead of last candle)
and (per TW platform analysis) ratio of > .5 (max profit)/debit at expiration
This looked okay, we will see. My mentor on these looks only nearer monthly expriation times so 20-30 dte on short leg and long 50-60 dte.
Placed an immediate 25% ($30) closing order and will watch closely as goal of 25-50% of debit.
Will shoot for higher % up to 50 when can watch it.
If price reaches a breakeven I add a calendar ATM if 10 dte remaining and if not, I take off the position.
Categories tricky for the way I trade but overall price movement and limits will fit into support and resistance.
Comment:
Modified the overlay indicator to change default from 10 to 5 on the plus minus so that it shows the intended range of 10 . The actual range for my trades varies with spot price but 10 (+/-5) is what am used to looking at as a gauge. Note that in posting chart they show +/- 10 or a range of 20.
Trade closed: target reached:
I do not look for a big profit on these. Just closed for 1.36 credit, very small gain but time to close with 4 days remaining on the short leg. Had not traded calendars so this was a good test of the waters; with the VIX on the low side I like these and diagonals as a strategy diversification. I actually closed before looking and see that the weeklies available to roll the short out are liquid but with the price wanting to test the upside better the risk off.
Comment:
Ooops meant to say above had not traded calendars recently. Have traded them a fair amount but had backed out last year when market got too jumpy for them.