Op#on
Elements
Your
Link
To
Success
Calendar
Spreads
Trading
Calendar
Spreads
in
Stocks
When
trading
Calendars
or
any
Time
Spread
in
Stocks
its
important
to
know
if
there
are
any
upcoming
news
events
such
as
earnings,
mergers
etc…
1.
For
Time
Spreads,
you
normally
only
want
to
trade
fairly
stable
stocks.
2.
For
the
most
part,
stay
away
from
stocks
that
are
subject
to
extreme
vola#lity
3.
No
Biotec,
Pharma,
Metals
Miners,
and
some#mes
Tech
Stocks
The
first
example
of
calendars
in
stocks
will
be
a
high
flyer
with
earnings.
Lets
examine
what
happens
to
your
trade
as
the
IV
increases
leading
up
to
the
earnings
announcement
In
this
example,
why
do
I
prefer
the
shorter
#me
frame
expires,
vs.
the
longer
term
expires
?
In
the
Calendar
trade,
I
want
to
be
long
Vega,
But
not
excessively
long
Vega
Using
the
shorter
term
expiries,
I’m
sufficiently
long
Vega
with
it
being
3x
Theta
The
longer
term
expires
are
make
the
Vega
5x
Theta
The
Vega
of
a
Time
Spread
will
get
larger
as
it
goes
along,
especially
if
price
remains
“near
the
money”
of
our
strikes
The
Skew
is
good
(we
are
selling
op#ons
with
a
higher
IV
than
the
op#ons
we
are
buying
We
are
going
to
look
at
the
trade
in
“Back
Trader”
Instead
of
having
slides
already
prepared
of
trade
management,
we
are
going
to
go
thru
the
trades
day
by
day
and
discuss
the
process
of
elimina#on
to
determine
or
adjustments
A
NOTE
ON
SPX
When
trading
the
S&P
500
Index,
most
of
the
#me
it
is
preferable
to
trade
the
Futures
Op#ons
in
stead
of
the
SPX
itself
The
Futures
Symbol
is
ES
and
then
you
add
the
extension
of
the
expira#on
months.
For
example
the
current
Symbol
is
ESU4
The
futures
op#ons
are
also
margined
similar
to
PM
accounts
The
margin
requirements
are
lower
than
SPX
itself
Also,
ES
op#ons
are
traded
almost
24
hours
a
day,
so
if
you
need
to
make
an
adjustment
a`er
hours,
its
preay
easy
Want
to
know
more
about
other
strategies
and
Tac#cs
?
Don’t
forget
about
our
other
Recorded
Courses
How
to
Trade
the
Weekly
Op#ons
Iron
Condors
&
Buaerflies
Op#on
Combina#on
Strategies
