What to do When a Calendar Spread Goes Wrong | NVDA Options

I opened up an ATM Calendar Spread on NVDA right before breaking news caused the stock to be down over 10% by the next day. Instead of panicking, you can open up another tent and wait for price to consolidate in a new range to either reduce your losses, return to break even, or even still end up profitable.
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[@TradingLitt]

I opened up an ATM Calendar Spread on NVDA on Aug 31, 2022 right before breaking news caused the stock to be down over 10% by the next day. Instead of panicking, you can open up another tent and wait for price to consolidate in a new range to either reduce your losses, return to break even, or even still end up profitable.

[@davidcutrano7455]

Really love the in depth explanations and reasoning. Please keep doing these Bryant. They are very helpful

[@ClipsTube101]

can you make a video about your thinkorswim hotkeys and settings you navigate the platform so efficiently and im really interested in seeing your setup

[@nphan3940]

What conditions is good to use put calendar spread strategy? Buy a put on short date and sell a put on a longer date?? Thanks

[@omijieabumere1540]

Let see the actual trades .

[@giovannidistefano9978]

Thanks for sharing!

[@TradingLitt]

Thanks for watching!

[@daltonpouliot364]

I had the back end of my spread drop in price a good 30% move with little to no movement in actual stock price. This happened right before the markets closed going into the weekend. Should I be worried about market open on Monday and try to close early?

[@bobbyforestall5108]

Would you advise against closing out a leg/end of the trade and holding the other? Meaning: Closing out the back end put, which I would imagine was up something like 300% with such an aggressive drop. Then continue to hold your front-end put to get back the lost premium as NVDA makes its way back to 150. Is that a bad option strategy?

[@TradingLitt]

It's not bad, just requires more attention and reasons for doing so. I don't like breaking apart my spreads too much. Most of the time would rather open up another position to lower my delta exposure if something is going wrong. With Iron Condors, I don't mind closing out the untested side and turning it into a vertical. But for calendars I rarely do that

[@xabillz]

I tried to do this kind of Calendar Spreads and all of them got “assigned”. I end up losing the premium every time! How do I know when there’s more chance to be assigned? How do avoid that? Thank you!

[@TradingLitt]

I would just stick to the Indexes then, the SPX, RUT, or XSP for smaller accounts. You won't get assigned trading them.

[@bingebinge3722]

Should have just bought the stock and go away...

[@jng1103]

Too long winded and time wasting.