Tuesday, September 22, 2009

Calendars

Take a look at the IV spikes on GMCR pre-earnings. I'm doing a NOV/JAN 80 call calendar spread, they report November 11th. we'll see how it goes, I'm still learning this strategy and want to watch it as IV rises to see how it's affected.

3 comments:

  1. I put on a ratio put backspread about 3 weeks ago. I was bullish on IV when I put it on, but I haven't made any money on it.

    -1 Dec 85p
    +3 Dec 65p
    2.50 credit

    A calendar might sound a little better.

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  2. I go into a little more detail on my own blog, http://3percenter-mytradingblog.blogspot.com/

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  3. After looking at the chart, I just sold to close the long Jan call at a 68% gain. The stock seems ready for a pullback, and I'll close the short side when that happens. I'm up on the spread 20% right now, so I could buy to cover but I'll wait it out for a couple days.

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