Thursday, July 29, 2010

RE: [TheOptionClub.com] XLE Aug-Sep Gorilla Calendar

 

I know I have said this before but, one of the most common misconceptions about calendars is how they react to changes in IV, and when the best time to enter them is.  I will be interested to see how the XLE calendar goes as well, my hope, it’s a home run.  That said, with Aug vol trading at almost 2% below Sep, I am not in love with the conditions in which you placed this time spread.    

 

-Mark

 

From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On Behalf Of William Fletcher
Sent: Thursday, July 29, 2010 9:09 AM
To: optionclub@yahoogroups.com
Subject: RE: [TheOptionClub.com] XLE Aug-Sep Gorilla Calendar

 

 

It is of interest to me.  I put an XLE calendar on on 7/13.  My high breakeven is $55 and it is at $54.31.  I have a couple of others like that - DIA and OEX - close to or at resistance and waiting for a pullback.  My guess is you entered at a better iV, but you are entering about at the end of what I consider my entry window.  It will be interesting to see.

 

The beige book is due out today, which may back off the price a bit and raise the iV on my positions to help me out a bit.  

 

Keep me posted.

 

Bill

To: OptionClub@yahoogroups.com
From: robhansen5252@hotmail.com
Date: Thu, 29 Jul 2010 04:57:22 +0000
Subject: [TheOptionClub.com] XLE Aug-Sep Gorilla Calendar

 

Hi. I opened up a "gorrilla calendar" time spread in XLE on Tuesday. I know that on occasion, this forum has tracked various options strategies, trades and adjustments both theoretically as paper trades and in real time. If there is any interest, I'd be happy to report the particulars of the trade, profit goals, adjustments, etc. as they occur. Of course if there are any differing opinions as to how to handle the inevitable scenarios between now and August expiration, they can be debated. Could this possibly be a learning experience?

RFH

 

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