Using Calendar Spreads in Your Options Strategy

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Tom Sosnoff and Tony Battista discuss calendar spreads when trading options. Calendar spreads allow you take advantage of cheap volatility. We use these strategies to sell premium and take advantage of time decay.

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That's Rich says:

So basically this is a perfect pre-earnings play, because vol almost always rises prior to earnings. Put your calendar on maybe a month prior to earnings and take it off anywhere up until the day before the announcement. Then, the day before, put on your favorite earnings play strategy for capturing vol contraction, like a straddle, strangle or other defined risk premium selling strategy. This is an excellent way to play a known, predictable volatility cycle from beginning to end. 😉

purplejesus28 says:

good point by Tom at 2:00

rama krishna says:

How the spread settles..if the strike goes deep in the money?

emilianopickett says:

The long-haired guy's interrupting the other  presenter really detracts from the  discussion.

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Cesar Salazar says:

Great Video, and yes calendar spreads should be used when volatility is very low to take advantage of an expiation in volatility.

TickerTank says:

Great video. This strategy is not the easiest to conceptualize, but you guys nailed it.

duncan maina says:

would trading a calendar spread close to expiration date "almost" guarantee profit?, especially at times of low IV

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