The reason I admire you that: 1. Your views/ conclusions always attach with historical evidences, not from your subjective opinions. 2. You always show many scenarios going with the action plans. 3. My knowledge has increased significantly from your evidences. Now I know why you have been succeeding. Thank you for your sharing your knowledge for free. So much appreciate!
FED may have put a floor under the market with all the money printing. However, to reach a new high, I think the virus situation needs to be resolved, and the economy will need to return to some level of normalcy.
Awesome strategy, but i'm assuming using both call spreads or both put spreads in this double calendar strategy doesn't matter with SPX options because there is no risk of being assigned or exercised before expiration (European-style options). Implementing this strategy with SPY options I'd always go with OTM call spreads and OTM put spreads to minimize the risk of being assigned.
Been binging your stock trading education videos. I've learned more from you in your first hour and half video than I did reading books and term searching on Google. Don't even get me started on the confusing videos the brokers put out there. Thanks for actually making it simple.
Wow it's like actual magic... Money magic. I cant believe I'm just now educating myself about investing/trading. Thanks Adam, lots to unpack here as far as possiblities and really understanding how this works.
This is a great strategy. Taking advantage of moderate higher probability price movement plus keeping time decay in your favor. However, if you don't have experience trading options and understand the greeks I would stay away from this trade and learn about options. They are not hard to understand but I see questions asking how to exit the trade. Basically, you "buy to open" the longer option (May 18) and "sell to open" the shorter option (May 15), then to close the trade you would choose "Sell to close" and "Buy to close" respectively.
Thank you Adam for doing this. I’m getting ready to do my first trade, but one question I have is, in case there is an after market event that drives price out of my range, can/how do I adjust my trade to the new price range the next day? Thanks for being a helper.
Ok so I’m giving this a go right now! Just submitted it’s either gonna pay off or be an 800 dollar lesson. I chose the March 10 expiration since that’s mine and chuck norris’ bday
Yes, of course. And then the stock market volatiles around its current price, leaving you with out-of-the money options and loosing a lot. Very risky. And also the implied volatility is now very, very high. Drop of such volatility will target the options prices. To put it simple: long option prices are enormous expensive right now. I have a MSc in financial mathematics, so I should know a little about the stuff. Done a lot in options, but since the VIX exploded, I only sell open position in options, where the call positions are largely covered. So buy 100 stocks for X amount, open sell call X + 10% or something. And take on the time value when expiring (huge time value here because of high VIX). If stock rises above the X+10% then you exercise (making gross 10%). When the stock drops in price you can buy some more from the option profit, and repeat the process.
Just be careful to only buy the best of the best companies through this time .... no1 should be caught holding a Bag of a sh*t company just to sell a call n make 10% ...but it is very good strategy as well👍🏻
I tried this strategy and it didn't turn out as I expected. If the market doesn't move much, so the price stays in the middle, the volatility is dropping, the trade doesn't turn positive as the analyzer suggests. What am I doing wrongly?
Ok for the very first time I paper traded Adam's strategy. I am a newbie have not traded before . I paper traded last Friday , Monday and yesterday which was Tuesday - paper traded $870 all together. My Think or swim P/L overall total is now showing $1,120.00 This is extremely encouraging - Adam you're a genius !!! I have a little problem with analyzing the trades . There are 4 legs to each calendar spread as they are all SPX just like Adam said. Does anyone know an easy way of using analyze on thinkorswim when you have more than one spread of the same index like Spx. I find it a little confusing. Adam thank you so much for your channel. I try and do everything like you say ! I believe I can do this . THANK YOU
Omg Adam you are an AMAZING TEACHER !!! am lost for words for what you are doing - Thank you and thank you - I can't thank you enough for all your help . If only you know how much giving you have and helping me and others who are watching you every single day. God bless you in all the things and in everything that you do ! Thank you again and again from the bottom of my heart !
This was a great video! Thank you and please keep posting ! I'm definitely a fan. Please answer : Why not do this all the time? Seems like it would be constant profits.
Im confused. How can bullish part be profitable at the expiration? Both CALLS gonna be worthless at the expiration if the price is around $2950-3000!!! But your graph says its $2000 profit... How come? What Im missing? Can anyone explain?
How do we know the S&P 500 will continue to go up forever? The nikkei 225 (3rd largest economy) reached its top in 1989 and has not made new highs since. It has also happened with various EU indices.
The Japan and EU are aging economies. US is a young economy because of its immigration policy. That's why all FANGS of the world are in the US and not in EU or Japan. Just my opinion pls.do share yours. Cheers.
U.S is the strongest economy in the world currently. The s&p 500 is comprised of many large cap growth and large cap defensive companies that have proven either extremely recession proof or fast growing during bull markets. Further, the U.S economy has been in a consistent uptrend for over 100 years despite having been tested by the Great Depression, Dotcom Crash, Financial Recession etc. And the index bounces back stronger than ever each time. In short, it's very unlikely the U.S economy will ever slip into an unrecoverable downtrend. And if that day ever does come, I guarantee whatever is happening in the world at that time, will be of greater concern to you than the stock market lol
I am very confused! How you can profit from both directions? You can only profit from call if price goes up, and lose on put. Would anyone explain it clearly?
Hi Adam, thanks for the sharing, would you be able to share how you would navigate this calendar trade if the volatility starts to drop before the expiry?
You're selling an ITM call which you're running the risk of being assigned, and if that happens you will have to exercise your long leg and lose the entire premium that you paid. How do you deal with that?
SPX is European Style Options where it cant get exercised until expiration date. SPY which is the ETF of SPX is American Style Options and therefore can be exercised at any time.
Hi Adam. Do you have any issues with Think or Swim not filling your orders even when bid / ask are exactly at your limit price ? Or do you use a different Broker more suitable for SNIPEX ?
Hi Adam, great strategy!! I just want to know how would you manage the decreasing VIX or volatility which can also decrease your profit or option value with this strategy? Thanks Sir.
This is genius Adam... Thank you soo much for sharing that with us.... I'm studying stocks under another guru but you and your videos never failed to add unbelievable value to me... God bless you Adam...
Nice! Thank you . However beware of any quick short term sharp move from underlying as calendar spread need time to pass by for profits as per design. But you end with showing us how to manage it ,I think is golden. Max 5 stars for the designer. Thanks
Adam, you really help me a lot in this situation, I keep doing sales put due to high premium, even I place a strike price far away and the longest DTE, still I am worried. This video give me an idea and solution to have me no worries at all... thousand of thanks
for those interested, I could not find that same info in TWS displayed in such practical way as on this video, but could find few other interesting things that definitely complete it: - IV of that expiration date is shown numerically at the top-right corner of the option chain or in the implied volatility chart (yeah, nothing new) - if you hover the mouse over the strike, it will show the deviation of that contract price - on the underlying chart settings, you may select 'estimate price range' to see graphically on the chart the same delta (I am doing this some days after the video recording but the numbers seem to be close enough - for instance, SPX 21 days prior to expiration Adam got IV 34.87% (+-191.4); now 18 days away I see IV 30.4% (+-198), visually seeing on the chart, there is no number to read, it's around there... this is new to me, if someone with this knowledge can confirm that this is correct, it will be appreciated - found very good explanations on the link below, and using those to find a number, I've calculated +-189; (is that to be considered close enough?) www.optionsplaybook.com/options-introduction/what-is-volatility/ dirty/simplified formula of pricerange = SQRT(#daystoexpiration/365)*IV*currentprice - there are also calculators to help that process but I did not like any that I tested bottom line: the formula is a good learning play but the chart feature in TWS seems to be consistent with what Adam showed, despite viewed in a very different way.
manually clicking the price of a vertical spread up and down with the + & - box on the analyze trade page also moves the red breakeven price point in the graph. You can adjust the price to see what a spread would cost if price moved up or down by x amount assuming no change in volatility. I haven't figured out how to correct for movements in vol
@@WhipsandWoods quite interesting "see what a spread would cost if price moved up or down by x amount", but I don't have any +- box... how did you get to it? do you use classic or mosaic?
Hi Adam. The options trading you teach I thought buy call has to be more then the target price right. Just then make money before expiration date. But this one showing is under target price already can making money. ?? Why is it uh? And what does it mean to select calendar. Anyone help explain thanks
@Adam Khoo - Many companies have their earning dates very shortly, how do you anticipate that any of them will actually be better than expected? I would expect few (if any) to pass expectations, which would result in a drop in the S&P. Am I missing something?
Really clear and precise! Thank you so much for spreading the knowledge. Would you recommend using this strategy on the index funds or maybe trying this with a smaller stock first?
Nice strategy, Adam. One thing I am not so sure, if market goes to one direction, one of the option trade is going to lose money and the other one is making money. Do you cancel the loser or keep both?
It sounds too good to be true. Keep in mind with large spread between bid and ask when using this strategy. Just because you put your price in mid range (between bid and ask), does not mean you will get filled. It will affect a lot of your potential profits or losses even if you close the trade early to aim for 95% win rate.
Hi Adam, thank you for this great video. I am an amateur investor, may I kindly ask: Since entering a calendar spread will give me negative profits initially (as I pay more to buy a call and receive lesser for selling another call), will this method be less profitable than just purely selling a call if I am pretty sure the latter will end up OTM? Thank you.
The risk profile looks very promising because we assumed that the IV stands still, don't forget there's a risk when the IV goes down, the risk profile won't be as good as that.. thank you for sharing anyway...
Sir, you are my Guru, although your courses are bit expensive for a person like me coming from a developing world. But i have learnt so much from you through youtube. One day I hope to meet you ..as you are my new age Warren Buffet kinda idol.
Adam - Great stuff! How did you know that this set up would have positive extrinsic value inside of 10 days near the center? When I analyzed a similar trade today, the extrinsic value was always negative or close to zero.
In upper side adam sell call bullish calrnder spread...good...lower side he should have to sell put...why he sell call downside isn't it already in the money...n how it b the bearish trade downside i m confuse here anyone please explain
If you're doing the sell portion of the calendar spread, you could potentially be selling naked calls if you don't own 100 shares of the underlying asset, correct?
Hi Adam, at ~11min, you said the green line is P/L on 15 May. But the screen (bottom left hand corner) shows 16 May. And 16 May is a Saturday? Are we missing something?
i understood the concept of making money on expiration if it goes either way on the stock market. My question is what happens if the SPX is at 2680 4 days after we place this trade? Are we loosing money? Or does the lower calender spread gain value and we can sell at a profit? I am struggling with the fact that the prices of the SPX can reach our targets much sooner than expiration date and wondering what the price would be if that were to happen
Yes your assumption is correct. Your lower spread will start gaining money after a few days if it makes a big gap down to 2680 today or something for example.
I am confused with +/- 191 price range from the tool; @34.8% IV with 21 days to expiration (of stock price at ~2836) the range should be around +/-238 for 1S. What am I missing here? Thank you
Hello mr. Khoo! I'm from EU and therefore I can not use TD Ameritrade. Is there any good alternative, where I can trade in such a way? Thank you for your answer.
diagonal spreads are better when volatility is expected to increase since you're long more time than you're short. They cost a little more but offer protection beyond your short strikes.
Hi Adam, Thanks for posting this unique modified double calendar spread strategy. I tried to use SPY to mimic the trade Monday with strikes at 270 and 305, but the profit/risk ratio is much lower than SPX. Any reasons?
The reason I admire you that:
1. Your views/ conclusions always attach with historical evidences, not from your subjective opinions.
2. You always show many scenarios going with the action plans.
3. My knowledge has increased significantly from your evidences.
Now I know why you have been succeeding. Thank you for your sharing your knowledge for free. So much appreciate!
Adam, you are such a wonderful teacher and mentor. No flashy animation and editing. No fancy studio. But TONS of value! THANK YOU!!
TONS OF VALUE!! Love him.. great teacher
Adam. You were simply born to be a great teacher and of course a superb investor ! Your parents must be very proud of you
Mr khoo, u been only one to calling bull market, when literally everyone else been calling bear, so interesting to listen to you!
One of them, not the only one. I have seen some others saying the same .
@@huawu8159 Who else?
@@anthonynguyen734 ARK Invest
@@huawu8159 yes.... some other saying the same lately.... , but he was consistently bullish after market reaching bottom & reversal happened...
FED may have put a floor under the market with all the money printing. However, to reach a new high, I think the virus situation needs to be resolved, and the economy will need to return to some level of normalcy.
Awesome strategy, but i'm assuming using both call spreads or both put spreads in this double calendar strategy doesn't matter with SPX options because there is no risk of being assigned or exercised before expiration (European-style options). Implementing this strategy with SPY options I'd always go with OTM call spreads and OTM put spreads to minimize the risk of being assigned.
watching your videos is like having a lecture at uni.. and the best part is I actually understand it . Thank you Adam
Been binging your stock trading education videos. I've learned more from you in your first hour and half video than I did reading books and term searching on Google. Don't even get me started on the confusing videos the brokers put out there. Thanks for actually making it simple.
You and Ray make the best content on stock market investing and trading!
Wow it's like actual magic... Money magic. I cant believe I'm just now educating myself about investing/trading. Thanks Adam, lots to unpack here as far as possiblities and really understanding how this works.
me too lol
This is a great strategy. Taking advantage of moderate higher probability price movement plus keeping time decay in your favor. However, if you don't have experience trading options and understand the greeks I would stay away from this trade and learn about options. They are not hard to understand but I see questions asking how to exit the trade. Basically, you "buy to open" the longer option (May 18) and "sell to open" the shorter option (May 15), then to close the trade you would choose "Sell to close" and "Buy to close" respectively.
Thank you Adam for doing this. I’m getting ready to do my first trade, but one question I have is, in case there is an after market event that drives price out of my range, can/how do I adjust my trade to the new price range the next day?
Thanks for being a helper.
thank you so much sir giving a wonderful lession...
Ok so I’m giving this a go right now! Just submitted it’s either gonna pay off or be an 800 dollar lesson. I chose the March 10 expiration since that’s mine and chuck norris’ bday
Yes, of course. And then the stock market volatiles around its current price, leaving you with out-of-the money options and loosing a lot. Very risky. And also the implied volatility is now very, very high. Drop of such volatility will target the options prices. To put it simple: long option prices are enormous expensive right now. I have a MSc in financial mathematics, so I should know a little about the stuff. Done a lot in options, but since the VIX exploded, I only sell open position in options, where the call positions are largely covered. So buy 100 stocks for X amount, open sell call X + 10% or something. And take on the time value when expiring (huge time value here because of high VIX). If stock rises above the X+10% then you exercise (making gross 10%). When the stock drops in price you can buy some more from the option profit, and repeat the process.
Just be careful to only buy the best of the best companies through this time .... no1 should be caught holding a Bag of a sh*t company just to sell a call n make 10% ...but it is very good strategy as well👍🏻
Adam Khoo.. Always coming through!
Amazing, can you please put the order live on Monday?
I tried this strategy and it didn't turn out as I expected. If the market doesn't move much, so the price stays in the middle, the volatility is dropping, the trade doesn't turn positive as the analyzer suggests. What am I doing wrongly?
Ok for the very first time I paper traded Adam's strategy. I am a newbie have not traded before . I paper traded last Friday , Monday and yesterday which was Tuesday - paper traded $870 all together. My Think or swim P/L overall total is now showing $1,120.00 This is extremely encouraging - Adam you're a genius !!!
I have a little problem with analyzing the trades . There are 4 legs to each calendar spread as they are all SPX just like Adam said. Does anyone know an easy way of using analyze on thinkorswim when you have more than one spread of the same index like Spx. I find it a little confusing. Adam thank you so much for your channel. I try and do everything like you say ! I believe I can do this . THANK YOU
Omg Adam you are an AMAZING TEACHER !!! am lost for words for what you are doing - Thank you and thank you - I can't thank you enough for all your help . If only you know how much giving you have and helping me and others who are watching you every single day. God bless you in all the things and in everything that you do ! Thank you again and again from the bottom of my heart !
Hi, Adam Khoo. May i know how to sell the calendar stock? may you have a short video to teach us.
Appreciate.
This was a great video! Thank you and please keep posting ! I'm definitely a fan.
Please answer : Why not do this all the time? Seems like it would be constant profits.
Im confused. How can bullish part be profitable at the expiration? Both CALLS gonna be worthless at the expiration if the price is around $2950-3000!!! But your graph says its $2000 profit... How come? What Im missing? Can anyone explain?
How do we know the S&P 500 will continue to go up forever? The nikkei 225 (3rd largest economy) reached its top in 1989 and has not made new highs since. It has also happened with various EU indices.
The Japan and EU are aging economies. US is a young economy because of its immigration policy. That's why all FANGS of the world are in the US and not in EU or Japan. Just my opinion pls.do share yours. Cheers.
U.S is the strongest economy in the world currently. The s&p 500 is comprised of many large cap growth and large cap defensive companies that have proven either extremely recession proof or fast growing during bull markets. Further, the U.S economy has been in a consistent uptrend for over 100 years despite having been tested by the Great Depression, Dotcom Crash, Financial Recession etc. And the index bounces back stronger than ever each time.
In short, it's very unlikely the U.S economy will ever slip into an unrecoverable downtrend. And if that day ever does come, I guarantee whatever is happening in the world at that time, will be of greater concern to you than the stock market lol
I am very confused! How you can profit from both directions? You can only profit from call if price goes up, and lose on put. Would anyone explain it clearly?
I would say watch the video more then once... The answer is there. That's the purpose of this video. CALENDAR SPREAD😁
you can profit on calls when price goes down if you sell calls or sell call spreads. Same for puts, sell put spreads when market goes up to make $$$
Hi Adam, thanks for the sharing, would you be able to share how you would navigate this calendar trade if the volatility starts to drop before the expiry?
You're selling an ITM call which you're running the risk of being assigned, and if that happens you will have to exercise your long leg and lose the entire premium that you paid. How do you deal with that?
SPX is European Style Options where it cant get exercised until expiration date. SPY which is the ETF of SPX is American Style Options and therefore can be exercised at any time.
Adam, you are superd. Selflessly sharing all these techniques for free to help traders.
Hi Adam. Do you have any issues with Think or Swim not filling your orders even when bid / ask are exactly at your limit price ? Or do you use a different Broker more suitable for SNIPEX ?
Amazing strategy. Love it. This seems like the perfect thing to use at the end of any consolidation wedge. Incredible TA. Thank you.
Adam, am I right to say that the profits of 2k or 2.5k need to minus of the cost $505, net profits should be $1495 or $1995, correct?
When using the ThinkOrSwim trade analyzer, it takes the cost into account. In this case, the green line is the actual profit (or loss).
The market hasn’t really moved. I am negative. When do you plan on closing out your positions?
Hang in there! It will go your way!
Hi Adam, great strategy!! I just want to know how would you manage the decreasing VIX or volatility which can also decrease your profit or option value with this strategy? Thanks Sir.
This is genius Adam... Thank you soo much for sharing that with us.... I'm studying stocks under another guru but you and your videos never failed to add unbelievable value to me... God bless you Adam...
Tranquility and Prosperity,
Likewise I am with a few excellent teachers and in a great group of individuals who are willing to share progress
Leonardo Azevedo who is the other guru?
Nice! Thank you . However beware of any quick short term sharp move from underlying as calendar spread need time to pass by for profits as per design. But you end with showing us how to manage it ,I think is golden. Max 5 stars for the designer. Thanks
One of the best tutorials I've ever seen. Thank you sir!
Adam, you really help me a lot in this situation, I keep doing sales put due to high premium, even I place a strike price far away and the longest DTE, still I am worried. This video give me an idea and solution to have me no worries at all... thousand of thanks
So before the strike price expires over the max and min spread...do you close or call it...In the Money, Out of the Money, At the Money?!?!?
So what happens to the options in the opposite direction? Do you let it go to expiration? Or do you sell it and take a loss?
U are awesome sir 👏🏻
Thanks for the knowledge you provided nd providing👏🏻
Huge respect sir ✊🙌
Thank you🙏
Best strategy seen yet. Great work!
Keep some soft things in the room so the sound dosent bounce. Pillow will also do.
in IB TWS, where can I see that estimated price change based on deviation/volatility?
for those interested, I could not find that same info in TWS displayed in such practical way as on this video, but could find few other interesting things that definitely complete it:
- IV of that expiration date is shown numerically at the top-right corner of the option chain or in the implied volatility chart (yeah, nothing new)
- if you hover the mouse over the strike, it will show the deviation of that contract price
- on the underlying chart settings, you may select 'estimate price range' to see graphically on the chart the same delta (I am doing this some days after the video recording but the numbers seem to be close enough - for instance, SPX 21 days prior to expiration Adam got IV 34.87% (+-191.4); now 18 days away I see IV 30.4% (+-198), visually seeing on the chart, there is no number to read, it's around there... this is new to me, if someone with this knowledge can confirm that this is correct, it will be appreciated
- found very good explanations on the link below, and using those to find a number, I've calculated +-189; (is that to be considered close enough?)
www.optionsplaybook.com/options-introduction/what-is-volatility/
dirty/simplified formula of pricerange = SQRT(#daystoexpiration/365)*IV*currentprice
- there are also calculators to help that process but I did not like any that I tested
bottom line: the formula is a good learning play but the chart feature in TWS seems to be consistent with what Adam showed, despite viewed in a very different way.
manually clicking the price of a vertical spread up and down with the + & - box on the analyze trade page also moves the red breakeven price point in the graph. You can adjust the price to see what a spread would cost if price moved up or down by x amount assuming no change in volatility.
I haven't figured out how to correct for movements in vol
@@WhipsandWoods quite interesting "see what a spread would cost if price moved up or down by x amount", but I don't have any +- box... how did you get to it? do you use classic or mosaic?
Hi Adam. The options trading you teach I thought buy call has to be more then the target price right. Just then make money before expiration date. But this one showing is under target price already can making money. ?? Why is it uh? And what does it mean to select calendar. Anyone help explain thanks
@Adam Khoo - Many companies have their earning dates very shortly, how do you anticipate that any of them will actually be better than expected?
I would expect few (if any) to pass expectations, which would result in a drop in the S&P. Am I missing something?
sir i never did trade in option trading thats why one question come to my mind
can we exit contract before expiry ?
If yes, How, what will be the loss
Hi, great video. I trade most of the time Forex. What is your software that analyse the trade? I know only Metatrader.
Hi Adam, do you have any interest in writing another book? I would love to own a book that covers options trading.
I am so grateful ending up here
Really hoping Adam uploads a new video with his thoughts for earnings week
Really clear and precise! Thank you so much for spreading the knowledge. Would you recommend using this strategy on the index funds or maybe trying this with a smaller stock first?
The spreads are probably better on SPY, once you have a huge account the index options make more sense
Nice strategy, Adam. One thing I am not so sure, if market goes to one direction, one of the option trade is going to lose money and the other one is making money. Do you cancel the loser or keep both?
It sounds too good to be true. Keep in mind with large spread between bid and ask when using this strategy. Just because you put your price in mid range (between bid and ask), does not mean you will get filled. It will affect a lot of your potential profits or losses even if you close the trade early to aim for 95% win rate.
Well Explained SD-1 With Calendar Spread 👍👌 Excellent Strategy
Hi Adam, thank you for this great video. I am an amateur investor, may I kindly ask: Since entering a calendar spread will give me negative profits initially (as I pay more to buy a call and receive lesser for selling another call), will this method be less profitable than just purely selling a call if I am pretty sure the latter will end up OTM? Thank you.
Thanks Adam. Appreciate your teachings.
Do calendar spreads work in any situation or does there have to be quite a bit of consolidation like in this case?
Excellent explanation! Very clear and simple. I like it!!!
thanks Adam
I have to pay for learning adam?
what is this method and is it taught in PranaProfit option course level 1 or 2?
I dont get it he use call buy for both
Thank you very much Adam for sharing this! Very helpful.
Good teacher
The risk profile looks very promising because we assumed that the IV stands still, don't forget there's a risk when the IV goes down, the risk profile won't be as good as that.. thank you for sharing anyway...
Yes! Skew! PnL charts are highly deceptive
Thank you, this is just what I am into
Sir, you are my Guru, although your courses are bit expensive for a person like me coming from a developing world. But i have learnt so much from you through youtube. One day I hope to meet you ..as you are my new age Warren Buffet kinda idol.
I am plan to attend Wealth academy one day to meet Adam Khoo
I’m assuming you close both positions, once you get to your target or level of profit that you are comfortable with.
Dear Adam, do you still trade the Snipex strategy?
absolutely
Is this what VIX does? If so and one doesn't have access to options do you recommend VIX as an alternative?
Pls make your option course available on youtube
Hey Adam, what was the name of the powerful strategy? Was it sniypex? And where can I get info on it?
*Hello Coach... If I use "Impulse Pullback" and "Bull Flag Surf" strategies for FOrex.. does it still works today?*
Can someone tell me what kind of trade this is, Adam calls it “something spread” I never heard it before, but it is genius.
Adam is doing two CALENDAR spreads. It is a calendar spread because the options have the same strike at different expiry dates.
Tosh_369 Thanks
Both legs together are called a double diagonal
Great analysis but it does not take into account the bid-ask spread and trading cost
How do u close both positions before expiration?
How do you close a trade that involves selling a put/call option? Never sold before, only bought
Pair this with an Iron Condor and it would be very hard not to make any money (unless it goes out of your iron condor short strike prices).
Adam - Great stuff! How did you know that this set up would have positive extrinsic value inside of 10 days near the center? When I analyzed a similar trade today, the extrinsic value was always negative or close to zero.
In upper side adam sell call bullish calrnder spread...good...lower side he should have to sell put...why he sell call downside isn't it already in the money...n how it b the bearish trade downside i m confuse here anyone please explain
Amazing stuff….I can’t thank you enough for the details
Glad to help
If you're doing the sell portion of the calendar spread, you could potentially be selling naked calls if you don't own 100 shares of the underlying asset, correct?
no its hedged
If we sell the call we should have minimum margen right. Please also talk about that. You only talk about the buying call.
Hi Adam, at ~11min, you said the green line is P/L on 15 May. But the screen (bottom left hand corner) shows 16 May. And 16 May is a Saturday? Are we missing something?
Bro, USA import more product and services compare to export. Then how USD value always increasing. ?
What is the trading platform you are using?
i understood the concept of making money on expiration if it goes either way on the stock market. My question is what happens if the SPX is at 2680 4 days after we place this trade? Are we loosing money? Or does the lower calender spread gain value and we can sell at a profit? I am struggling with the fact that the prices of the SPX can reach our targets much sooner than expiration date and wondering what the price would be if that were to happen
Yes your assumption is correct. Your lower spread will start gaining money after a few days if it makes a big gap down to 2680 today or something for example.
If I Bought a option with two contracts, may I sale one on a date, another one on different date before their expiration ?
Great stuff as always Adam.
so you closed the trade? had you open the trade 1 week later you would have killed it but there was no way to know. Great video though, learned a lot!
Once I gain profit and enough to pay your course, I will sign up your course to learn more strategy
do I need to be approved by broker in order to use this strategy?
What software you used to analyze the earn or when will be the max profile ? Thx.
Think or Swim from TD Ameritrade
First time hearing of this type of trading. Wow no one else talks about this on UA-cam
Crypto Smash because is profitable
@Delage Eric did you buy his courses?
I am confused with +/- 191 price range from the tool; @34.8% IV with 21 days to expiration (of stock price at ~2836) the range should be around +/-238 for 1S. What am I missing here? Thank you
Hello mr. Khoo!
I'm from EU and therefore I can not use TD Ameritrade. Is there any good alternative, where I can trade in such a way?
Thank you for your answer.
Great Video. Thanks.
excellent review on the double calandar spread. Hopefully the market doesn't go sideways for 21 days.
Adam is this strategy more superior than vertical spread? Can you please do a video on Vertical Spread?
diagonal spreads are better when volatility is expected to increase since you're long more time than you're short. They cost a little more but offer protection beyond your short strikes.
Hi Adam, Thanks for posting this unique modified double calendar spread strategy. I tried to use SPY to mimic the trade Monday with strikes at 270 and 305, but the profit/risk ratio is much lower than SPX. Any reasons?
Also lower premium and loss risk
How can you have a calendar spread that is just 3 days apart Adam?