Master Calendar Spreads with this live trade on Gold (GLD)
Calendar spreads (aka “Time Spreads” or “Horizontal Spreads”) are an effective Time decay and non-directional strategy.
Course Description
MASTER CALENDAR SPREADS
Calendars Spreads are popular trades and come under the category of Time spreads. In a Calendar spread, we sell the front month Option series and buy the back month Option. The Calendar is generally constructed at the money, however, you can create bullish or bearish variations. It starts out as a delta neutral but can quickly move into a biased position. The Calendar is also one of the few strategies that is a Theta positive and a Vega positive trade. Because it is Vega positive, your Calendar will do better if Volatility increases after you put the trade on. The primary method of profit in Calendar Spread Strategy is to take advantage of a higher level of time decay in the front month. We put a Calendar trade on the GLD, and this quickly turns into a Double Calendar when price moves too much in one direction. In fact, this trade is an absolute roller-coaster and you will learn a very valuable lesson – Don’t give up on your losers. If you simply close your losers and move on to the next trade, you will make the same mistakes and lose again. Fight your losers and turn them back into a break-even and you would have never felt better with a trade.
What you can expect
- Why is the Calendar spread trade a unique trade in the Options playbook
- How do we conceptualize Options from two different expiry series
- What does Vega positive and Theta positive mean
- What danger points should we watch for in Calendars
- What are the popular adjustments for Calendars
- Why can a Calendar sometimes become a directional position
- Why are time spreads a little hard to adjust
- What is the first and simplest adjustment to a Calendar Spread Strategy
- What are the advantages of a double calendar
- How should we deal with a trade in serious trouble
- Why are exact profit and loss calculations difficult to calculate
What are the requirements?
- Option basics – Long and short Options
- Dynamics of different expiry series
- Thorough understanding of the Option Greeks
What am I going to get from this course?
- Over 6 lectures and 1 hour of content!
- Master the art of putting on Calendar spreads
- Learn why Calendar spreads are unique with its Greeks
- When does the Calendar spread get into trouble
- This is the toughest calendar spread trade that we put on the Gold ETF (GLD). Learn how this trade was managed
- How you can turn losing trades into winners
What is the target audience?
- This is an advanced strategy, and you must know single Options and spreads
- If you want to make consistent income with Calendar spreads
- Learn to adjust Calendar spreads like a professional
Curriculum
- Lecture 1: Introduction to the Calendar Trade 06:06
- Lecture 2: Discussion of the Calendar trade 06:30
- Lecture 3: Trade setup on GLD 16:41
- Lecture 4: Volatility rocks the Gold ETF – Art of Adjustments -I 17:40
- Lecture 5: Volatility rocks the GLD ETF – Art of Adjustments for a Calendar Part II 17:27
- Lecture 6: Conclusion 05:44
Your Instructor
Hari Swaminathan is the founder of www.OptionTiger.com , a cutting-edge Options education and trading company based in Washington D.C. Hari is an entrepreneur, everyday person and a self-taught Options expert for over 8 years. Hari has a Bachelors degree in Engineering from India, and MBA degrees from Columbia University in NYC and London Business School in the U.K. You can read more about Hari on his Linkedin profile.
Options are powerful, but they have a learning curve. Every course on OptionTiger breaks down all the complexities of Options in simple language that anyone can understand. In every strategy, you’ll learn how to navigate successfully through good and bad situations. Options provide the best way to to take advantage of bull markets, bear markets and everything in between. Options are a mathematical and strategic skill much like Chess, and no amount of technological advances can make this skill obsolete. Because the fundamentals of Options are never going to change. Welcome to the world of Options, THE most fascinating instrument in the financial markets.
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