We began putting more emphasis on a portfolio-level view of risk-management in the July cycle, entering multiple trades on a single underlying and looking at the overall position, as well as each individual trade, in deciding when and how to make adjustments. Our return for the month wasn’t stellar, but considering the fact that the market traced out an 8% correction before recovering abruptly in expiration week, we think our 3% average return per trade showed that the strategy worked…
We're pleased to announce that thinkorswim has joined the list of companies that offer autotrading for Calendar Options members. Now subscribers to our calendar-spread newletter can have published trades automatically executed with any of three leading options-trading brokers...
We often refer to the complementary nature of iron condors and calendar spreads, in that the former benefit from falling implied volatility, while the latter generally get a boost from rising IV. So does that mean you should balance out volatility risk by allocating as much capital to calendars each month as you do to iron condors? Unfortunately, it isn’t that simple.
First, it’s important to think about where implied volatility might be headed, especially when it’s at one extreme or…
Tuesday, August 11, 2009
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