Tag Archive | "calendar spread"

Expiring Monthly Guest Contributors

Monday, May 30, 2011

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Expiring Monthly has published some great articles in recent months, many from guest contributors. In this post, I’d like to highlight some of those recent guest contributions. The May issue was published last week and is available now for subscribers – cf. my colleague Bill’s May recap. Chris McKhann (optionMONSTER) wrote a column in the January 2011 issue, “The Vega Calendar Trap,” on how the vega of a given calendar or diagonal spread can be deceiving, and…

Bonus Trade: SPY October/November Calendar Spread

Friday, September 10, 2010

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We kicked off the October expiration cycle for our Calendar Options newsletter yesterday with the following trade: Day limit order Buy to open 4 SPY Nov 112 puts Sell to open 4 SPY Oct 112 puts for a net debit of $1.42 or better. This morning, the position is still mid-priced around $1.42. Note that 4 contracts per leg is our base position size. Trading whole-number multiples of the base size ensures that adjustments will not result…

Sleepy Nasdaq

Tuesday, August 12, 2008

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Here are some data that have us thinking this afternoon: maybe the Nasdaq doesn’t resume its parabolic move from here. There are certainly plenty of short term reasons for Nasdaq bulls to frown and doze off for awhile: the QQQQs are up over 7% in 7 days.  Money flow has been stagnant.  The ADX line is only barely ticking up, and RSI readings at various periods are all inching toward overbought.  The McClellan Oscillator (attached) may have peaked, and even…

Market Melts Up

Tuesday, April 1, 2008

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In a viable, vibrant bull market working alongside a healthy economy, are 400 point rallies like this one really needed? Volume today? Shrug. Nothing to write home about. Volume in IWM and QQQQ was particularly average; the biggest volume was in the Dow, which, as you may recall, is still composed of just 30 stocks. The biggest Dow gainers today, unsurprisingly, were AIG (+8%) AXP (+7%) C (+11%) and JPM (+9%). As nice as this rally was, only QQQQ…

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Jared Woodard specializes in trading volatility as an asset class. With over a decade of experience trading options and other volatility products ... Read More

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