#51
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Re: Apple puts July 21
[ QUOTE ]
Mind if I ask why you prefer calendar spreads versus trading optipns at different prices in the same month? [/ QUOTE ] I don't necessarily prefer them. I guess it depends on the situation and what I am expecting. The thing I like about calenders versus verticals of butterflies for example is they can be easier to salvage something out of if you are wrong. If for example Pepsi would have tanked my long option (oct calls) would have held up better than the front leg of a vertical while my short option went worthless. Also since I had a 2 month spread I could hang on and sell Septembers against my long Octs after the August shorts expired worthless. Calendar spreads can give you some manuevering ability if things don't work out as you had expected. In many instances I find them to be more forgiving. |
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