LD Lossdog Research
strategy

calendar spread

13 matching records.

Trade idea

CL calendar spread

The current spread of $9 in crude oil is due to uncertainty in the front month, which is priced higher than the back month. While the spread may narrow, it is not guaranteed, and traders should be cautious about assuming mean reversion. The spread reflects market sentiment and physical deliverables, not arbitrage opportunities. Traders should consider the risk of further widening and the potential for the spread to remain wide.

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Strategycalendar spread
Assetcommodity
Time horizonShort-term
Entry / triggerWide spread due to uncertainty in front month
Target / exitPotential narrowing of the spread
Invalidation / stopSpread widening further
SpeakerScott
Risks
  • Spread widening further
  • Market conditions changing
  • Uncertainty in future delivery
longcommoditylongcalendar spreadCLshort-term
medium confidenceVerify in video at 04:39 ↗
Trade idea

CL Buy December CL future and sell current month CL future to play for a return to contango

The speaker suggests a calendar spread strategy involving CL futures to capitalize on a return to contango. This strategy is based on the idea that contango (where futures prices are higher than the spot price) can be exploited by buying a longer-dated future and selling a shorter-dated one. The speaker acknowledges that this is a common strategy but notes that it is challenging for retail traders due to capital requirements and the need for precise timing.

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StrategyBuy December CL future and sell current month CL future to play for a return to contango
Assetfutures
ExpirationDecember
Time horizonUncertain, depends on market conditions
Entry / triggerReturn to contango
Target / exitProfit from contango
Invalidation / stopMarket conditions that prevent contango
SpeakerTony
Risks
  • Capital requirements
  • Market volatility
  • Timing risk
calendar spreadfuturescalendar spreadCL
medium confidenceVerify in video at 31:54 ↗
Trade idea

Trade idea put calendar

This is a calendar spread, which I thought was super cheap.

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Strategyput calendar
Assetoptions
ExpirationSE with 30 days
Entry / triggerright around the same price, right around a $160,$165
Target / exitright around a $160,$165
Speakerspeaker
Structure / legs
  • buying the O 95 puts
  • selling the SE 95 puts
calendar spreadcalendar spreadoptions
high confidenceVerify in video at 37:31 ↗
Trade idea

Trade idea calendar spreads

short puts in the yen can be a viable strategy for profiting from volatility

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Strategycalendar spreads
Assetcurrency
Time horizonshort-term
Entry / triggershort puts in the yen
Target / exitprofit from volatility
SpeakerTom
Risks
  • market direction
  • volatility changes
shortForexshortCalendar Spreadshort-term
high confidenceVerify in video at 44:23 ↗
Trade idea

Trade idea Calendar spreads

The speaker suggests that the current oil price spread is unusually wide, and there may be an opportunity to profit from the convergence if the spread normalizes. However, the speaker also warns of the risks involved, advising caution and small position sizes.

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StrategyCalendar spreads
Time horizonUntil the market tightens up or the spread normalizes.
Entry / triggerIf the front-month oil price is significantly higher than the next-month price, consider selling the front-month and buying the next-month.
Target / exitPotential profit from the convergence of prices if the spread normalizes.
Invalidation / stopIf the spread widens further, the trade may be invalidated.
SpeakerMark
Risks
  • Market volatility
  • Unexpected price movements
  • Liquidity issues
Calendar Spread
medium confidenceVerify in video at 53:14 ↗
Trade idea

none calendar spread

A calendar spread involves selling a shorter-term option and buying a longer-term option with the same strike price. The ideal scenario is for the underlying asset to trade near the strike price, allowing the short-term option to expire worthless while the long-term option retains value. The risk is limited to the debit paid for the spread, and the potential reward is typically between 20% to 50% of that debit. This strategy is low-risk and low-reward, making it suitable for learning purposes.

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Strategycalendar spread
Assetnone
Expirationnone
Time horizon2 weeks
Entry / triggerStock price near strike price
Target / exit5-15 cents profit
Invalidation / stopStock moves significantly away from strike price
SpeakerTJ
Risks
  • Limited upside potential
  • Requires the underlying asset to trade near the strike price
  • Not ideal for significant downside protection
nonecalendar spread2 weeks
high confidenceVerify in video at 41:40 ↗
Trade idea

Trade idea calendar spreads

calendar spreads are avoided due to their slow movement and pricing to perfection

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Strategycalendar spreads
Time horizonshort-term
Entry / triggerwhen the stock beats the trader
Target / exitquick profits within 10-20 seconds
Invalidation / stopslow movement and pricing to perfection
Speakerspeaker
Risks
  • low probability of quick returns
  • difficulty in making back the cost
Calendar Spreadshort-term
high confidenceVerify in video at 1:23:43 ↗
Trade idea

null Calendar spread

The speaker suggests a calendar spread as a low-risk, low-reward trade in a low volatility environment. The trade is based on the assumption that the yield curve may narrow if long-term rates decrease while short-term rates remain stable. The trade involves buying one ZB contract and selling two ZN contracts, but the exact execution details and risk management are not fully specified.

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StrategyCalendar spread
Assetnull
Expirationnull
Time horizonUncertain
Entry / triggerLow volatility environment
Target / exitUncertain
Invalidation / stopUncertain
SpeakerSpeaker 1
Risks
  • Uncertainty in market direction
  • Potential for increased volatility
  • Execution risks in complex options strategies
nullcalendar spread
medium confidenceVerify in video at 13:55 ↗
Q&A

Is buying the back month and selling the front month the best approach to take for calendar spreads?

Calendar spreads can be effective for small accounts, but the speaker suggests exploring diagonal spreads for better risk-reward profiles. They emphasize the importance of managing risk and profit targets.

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Actionable takeawayConsider diagonal spreads for better risk-reward profiles, especially with small accounts.
Calendar SpreadTrading Strategy
high confidenceVerify in video at 44:46 ↗
Q&A

What is the reason for the change in the cost of SPX calendar trades?

The cost increase is due to the nature of calendar spreads in European-style options, where early exercise is not allowed, and the risk associated with these trades is tied to the premium paid for the calendar spread.

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Actionable takeawayThe cost of SPX calendar trades has increased due to the structure of European-style options, which do not allow early exercise, thereby affecting the risk and cost of these trades.
Calendar SpreadSPXOptions
high confidenceVerify in video at 26:34 ↗
Q&A

How does a calendar spread work, and how can one make money from it?

A calendar spread involves buying and selling options with different expiration dates. The speaker explains that the strategy relies on the difference in time decay between the short and long expiration dates. The trader aims to profit from the difference in the rate at which the options decay, with the long expiration providing more time for the underlying asset to move in a favorable direction.

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Actionable takeawayA calendar spread can be profitable if the underlying asset's price movement aligns with the time decay difference between the short and long expiration dates.
Calendar SpreadOptions
medium confidenceVerify in video at 41:13 ↗
Q&A

How do you make money on a calendar spread?

A calendar spread involves selling a shorter-term option and buying a longer-term option with the same strike price. Profits are made if the underlying asset trades near the strike price, allowing the short-term option to expire worthless while the long-term option retains value.

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Actionable takeawayProfits are made if the underlying asset trades near the strike price, allowing the short-term option to expire worthless while the long-term option retains value.
Calendar SpreadOptions
high confidenceVerify in video at 41:40 ↗