How to Trade the Calendar Options Strategy

  Рет қаралды 34,043

SMB Capital

SMB Capital

3 жыл бұрын

Options Workshop: bit.ly/3oSHBpW
#OptionsTrading #Options #daytrading
SMB Disclosures www.smbtraining.com/blog/smb-...

Пікірлер: 47
@smbcapital
@smbcapital 3 жыл бұрын
Options Workshop 📈 💎 👐 bit.ly/3oSHBpW
@m82011
@m82011 5 ай бұрын
The biggest enemy for calendar spreads is IV , make sure you place order when IV is low .
@alsuzy1345
@alsuzy1345 2 жыл бұрын
As I learned from Mr. Seth, the market can do whatever the heck it wants to do. My personal favorite options strategy is the calendar. As someone that has taken the Options Workshop and the Foundations Course, it will be the best education you will ever receive.
@vincentfaragasso387
@vincentfaragasso387 3 жыл бұрын
Every single video I watch of you is great way to understand and look at options in other ways.
@smbcapital
@smbcapital 3 жыл бұрын
we try to get a lot of basic concepts and hopefully you'll be able to try the strategy out and make your own
@TubeDirektor
@TubeDirektor 3 жыл бұрын
One of the best online video series that shares genuine information with the interest to make traders succeed. Great work and awesome videos, have learned a lot of tricks especially with timing and index trading although i thought i knew options trading :). Always room to learn and your classes have been awesome!
@smbcapital
@smbcapital 3 жыл бұрын
we appreciate that!
@johnnyfantastic100
@johnnyfantastic100 3 жыл бұрын
Timely video for inside days like we had this week....today was a good day to pitch some big tents.
@stevemccullough7075
@stevemccullough7075 3 жыл бұрын
Excellent Seth!!
@edbrandt8972
@edbrandt8972 2 жыл бұрын
Another helpful video. I am going to try some trades in my paper trading account before going live.
@Birdsiviewfpv
@Birdsiviewfpv 2 жыл бұрын
at Ref Point 5:53, Shouldnt it be Cash "Paid" for buying the June 4th Call? There is a typo and its getting me confused. @smbcapital
@aaamos16
@aaamos16 3 жыл бұрын
Seth is the best.
@shawnclark732
@shawnclark732 2 жыл бұрын
Nice video but I wish you would’ve shown what happens if the market moved swiftly up or down from the strike.
@edwardelric5841
@edwardelric5841 Жыл бұрын
you lose money lol
@jg5479
@jg5479 Жыл бұрын
Question, today is March 24 2023. I went and did a calendar spread on msft for April 21 and 28 on fidelity. According to them, theta on my 28 calls and puts I bought are decaying faster then my short calls and puts. I understand In the long run my shorts should decay faster but as i set it up at the moment my longs are decaying faster. Why is that? If this keeps up my longs would be zero while my shorts would still hold value. Strikes were 310 and 250
@db527
@db527 4 ай бұрын
Really enjoy the videos from SMB however with my limited experience and being a green horn trading SPX I feel like this scenario would NEVER end this way and would like to see what strategy Seth would use for a roll.
@marlymarv2421
@marlymarv2421 3 жыл бұрын
Dropping 💎’s
@ken34258
@ken34258 3 жыл бұрын
Great video! I am always looking for a video explaining Calendar Spread. I really believe a Calendar spread is a nice way to start in terms of consistent profit. My question to Seth and SMB is that in what % of gain, or date from expiration, do traders close out on the Calendar Spread? If the stock blow by the credit option by gapping up, what adjustment would you make? Thanks.
@ProsperityEngine
@ProsperityEngine 3 жыл бұрын
don't trade stock options. Only Index or ETF options. That way you won't face blow-ups or gaps
@smbcapital
@smbcapital 3 жыл бұрын
yes we recommend index options for this. With a stock you might be subject to large gap ups or downs
@johnnyfantastic100
@johnnyfantastic100 3 жыл бұрын
@Kenneth- In my experience a well constructed calendar has less directional risk and is managable. As versitile as you can get with strikes and dte collapsing vol will destroy it. If vol is high you may want to consider a tighter tent but there are other choices for higher IV environments. Find the most capital efficient way to express your given thesis and you will be ok.
@ragingbull94mtx
@ragingbull94mtx Жыл бұрын
I usually target 10% of the debit paid.
@JS-no7zq
@JS-no7zq 3 жыл бұрын
A real Pro
@smbcapital
@smbcapital 3 жыл бұрын
💎🙌
@ChazR25
@ChazR25 3 жыл бұрын
What about the risk? Let's assume the SPX goes up 50 points to 4200 at expiration and the buyer exercises? Does our long leg automatically get exercised to cover? Especially important for accounts that might lack $42000 to fulfill assignment because if the long option has to be exercised, then the trade is a disaster.
@---li4yn
@---li4yn 3 жыл бұрын
SPX options are cash settled, there is no assignment risk. You would usually close both legs before expiration of the earlier short leg.
@ChazR25
@ChazR25 3 жыл бұрын
@@---li4yn Ahh yes, TY. I'm a bit of a noob...trying to wrap my brain around the various scenarios with different option trades
@mem4730
@mem4730 4 ай бұрын
Great content. BTW the software you use here is Opvue but they closed down, What do you use now?
@williamlapes1372
@williamlapes1372 3 жыл бұрын
I don’t agree with your terminology. 1st you don’t receive money when you Buy a call. You spend money. When you Sell you receive.. you get money! Confusing or misleading ...?
@theevent5693
@theevent5693 2 ай бұрын
9:16 key point
@nitinmirpuri3313
@nitinmirpuri3313 7 ай бұрын
You explain strategy, No one in the entire youtube community has ever e plained margins in selling
@MichaelDavidRobinson
@MichaelDavidRobinson 24 күн бұрын
Hey. I really like listening to you. And would like to stop by and visit as I am based in NYC (but live in FL) but what is it with the open shirts and no t shirt. It is distracting.
@quantstyle6448
@quantstyle6448 3 жыл бұрын
👍
@marcofavro7050
@marcofavro7050 2 жыл бұрын
You can lose a lot of the market moves against you . Also what is the max loss?
@finylvinyl66
@finylvinyl66 8 ай бұрын
It's how much you paid to put on the spreads and it's very unlikely it will be that bad.
@darknessfierce4209
@darknessfierce4209 3 ай бұрын
I got assigned and lost the premium Just a heads up, if you’re selling the same strike and paying to get in
@pavelbaranov6635
@pavelbaranov6635 3 жыл бұрын
cash received for buying a call? what planet are you traiding on?
@PhilRaso
@PhilRaso Жыл бұрын
Ahhh. Now I get it. You buy back one and sell the other.
@CharlesWensington-oo5tc
@CharlesWensington-oo5tc Ай бұрын
the explanation as to why theta costs more at shorter durations is literally wrong. why would an increase risk premium lead to a lower price?
@rascalap2968
@rascalap2968 10 ай бұрын
So, selling the call makes $10K, and then buying back costs $4K, so profitable $6K. Buying the later call costs 18K, selling it later gains 15.5, losing you 2. So what is the purpose of the later buy/sell? All you’ve demonstrated is how sell then buy back, can make a profit, and not explained at all what the purpose of the calendar spread is…
@gillesnick1052
@gillesnick1052 3 жыл бұрын
What if your short call expires in the money at expiration.. And then.. your long call Expires out of money. 1% move in the SPX is over 100 points.. Picking up pennies in front of a steam rollers.. Just saying
@kottkecoaching
@kottkecoaching 4 ай бұрын
they are both the same strike. a spread is almost a way to buy a single leg for less money. the longer dated leg has more theta where both legs have the same intrinsic value. yes if you hold the back month and it expires worthless you only have the collected premium cash on hand. the risk is the back month expiring worthless.
@MikeSugs
@MikeSugs 10 ай бұрын
You missed the part where if the price moves up 1% up or down, you lose your entire investment.
@finylvinyl66
@finylvinyl66 8 ай бұрын
wrong
@JoeRoganful
@JoeRoganful Ай бұрын
Dude, stop pushing your neck out like that. It makes you look so conceited.
@stevemccullough7075
@stevemccullough7075 3 жыл бұрын
Excellent Seth!!
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