Not really any advantage. Calendar pricing is relative to underlying price. Therefore think '10 for 1 Stock Split'. With the same IV, a $300 underlying and 10 ATM 300 Call Calendars (each going for 5.00) should be 10 times greater than the value of 100 ATM 30 Call Calendars (each going for .50) of an underlying trading 30. It is basically the same risk reward for the $5000 trade. It boils down to IV and what it does and it strikes proximity to the underlying at any given time.
Hope that clears it up for you,
Have a Great Thanksgiving,
charles@riskdoctor.com
--- In OptionClub@yahoogroups.com, "drrobhansen" <robhansen5252@...> wrote:
>
> I had heard either during a webinar or maybe in a magazine that calendar spreads are best put on with high priced stocks. Is there anyone that would explain to me why it would be advantageous? Or maybe I'm just mixing this up with some other strategy?
>
> Thanks,
> RFH
>
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