I am glad I stumbled upon this video. Very helpful. Is it possible for you to demonstrate an example for this calendar spread? Say, take AAPL stock as an example? Again, your videos are highly appreciated.
Great video. Curious, though: does Sasha write BACKWARDS on a sheet of glass or is there a recording system that reverses the illustrations for us? Impressive either way.
Hi, I have a couple of questions. 1. If the stock is right at the strike price at the close of the market on the day of expiration of the front month; could you let the front month expire for the full profit? 2. Have you done calendar spreads on SPX or VIX or XSP? And/or is there more risk doing a calendar spread on VIX or SPX or XSP compared to normal equities like SPY?
Can I lets say sell out of the money front weekly contracts, buy back contracts way long 3-4 months. Then let expire the weekly ones and every week sell another contract? Would it make sense?
Thanks. I recently started to trade options with mixed results. I'm starting off small, only 1 or 2 contracts at a time. I've been buying simply calls for now. I can't sell naked call/puts yet.
@@tradersflyofficial Hi, Sasha, Can i keep the second leg of a calendar long call spread, if first(short one) is expiring worthless?? How to do that? If I just let it go Thank you!
@@vinnyvidivici5930 the points to consider when you sell an option are: How much credit you are getting back, what is the RR, what is the the BP reduction, what is the delta etc whether it is ATM or not is not important for two reasons 1) for volatile stocks (whose options we love to sell) this is min it is ITM, next min it can be OTM 2) if you worry about assignment you can always roll or close at the last min
@@vinnyvidivici5930 By no means I want to give out invest/trade advice, just for reference purpose, I currently sold put in these stocks: JMIA, LTHM, IPOB, PLTR,VIPS,
I'd like to remind people you can do this without selling a Call or Put if you live in the real world where a lot of traders don't have that $25,000 margin account. Whichever one he said to "Sell" to place the trade (Like sell a put), just "Buy" the same strike call. Example; You can buy a 7/22 $100 Put, and at the same moment, buy an 8/19 $100 Call... if you think the underlying security will go down. (Short play) The Long play would be buying a 7/22 Call and buying an 8/19 Put. Cheers, Edward
@@tradersflyofficial Hi Sasha, I am planning to make some teaching tutorials for photography, do you mind sharing your Behind the scene setup with this glass. Looks really awesome. Way better than writing on a board where the speaker has to turn his back towards audience. thank you in advance.
But isn't the point of calender spreads to also capitalize on future increases of IV?.. ideally you want to employ this in a low IV situation and looking for future expansion of IV in conjunction with time decay.
You can look at the calendar as more of focusing on implied volatility but that only is relevant if you're doing a longer-term duration spread because that's where the volatility is important. If I'm doing a 9-day calendar spread the volatility is less important since my theta or time value is going to be extremely high.
Hey Sasha! What’s the best way to contact you for future questions? And this just came to my mind so I thought it’s worth asking. So my uncle is the president at this lighting company right and he has a 401k along with other investment plans like IRAs. His stock isn’t doing too swell in any of his accounts, and he blames it on the fact that he picked an aggressive account. But if the stock which pays good dividend is going down, AND it’s an AGGRESSIVE account, why couldn’t the experienced portfolio manager maybe use options like selling calls for insurance? Like wouldn’t that make my uncle more money? I guess my main question is why don’t portfolio managers do a lot with derivative instruments to control risk just in case a customers stock falls? Thanks.
Sasha Evdakov: Tradersfly thank you! I appreciate you taking the time to read questions in the the RUclips comments. I really want to learn more about derivatives and your channel is just simply-amazing!
@@tradersflyofficial Not going anywhere Professor. Just have had to put more time into the trucking company. 5 trucks and still standing, so I guess that's a good thing. I just hate when I let my homework get behind and I have to catch up when I can.
@@tradersflyofficial I think it's just because there's a lot of complicated stuff involved! You explained time decay with good analogies and it really helped me understand why calendars are bought and sold when they are. Thanks!
@@tradersflyofficial I think you just like to hear yourself speak. Overall I do like your videos. Your response is a straw man argument, and it has nothing to do with what I commented about. You need a professional editor. But, I also want to say thank you for the videos.
I am glad I stumbled upon this video. Very helpful. Is it possible for you to demonstrate an example for this calendar spread? Say, take AAPL stock as an example? Again, your videos are highly appreciated.
I like seeing you and the glass at the same time. Thank u.
Great video. Curious, though: does Sasha write BACKWARDS on a sheet of glass or is there a recording system that reverses the illustrations for us? Impressive either way.
After scrolling down I see others were asking this question: apparently it's a sheet of glass but he reverses the display in post production.
Hi, I have a couple of questions.
1. If the stock is right at the strike price at the close of the market on the day of expiration of the front month; could you let the front month expire for the full profit?
2. Have you done calendar spreads on SPX or VIX or XSP? And/or is there more risk doing a calendar spread on VIX or SPX or XSP compared to normal equities like SPY?
Can I lets say sell out of the money front weekly contracts, buy back contracts way long 3-4 months. Then let expire the weekly ones and every week sell another contract? Would it make sense?
Thanks. I recently started to trade options with mixed results. I'm starting off small, only 1 or 2 contracts at a time. I've been buying simply calls for now. I can't sell naked call/puts yet.
You're welcome. Glad that you are pushing yourself forward a little bit at a time. As always, thank you so much for watching.
@@tradersflyofficial Hi, Sasha, Can i keep the second leg of a calendar long call spread, if first(short one) is expiring worthless?? How to do that? If I just let it go Thank you!
very easily explained. thank you.
So if I understand, a calendar is for a rangebound or silent stock? Appreciate your passion for teaching, Thank you.
Jacob David incorrect. You want volatility expansion. Calendar spreads are a debit spread.
Iron condors are range bound but should be only use when there is high implied volatility.
yes, you want the stock within a range if it is out of the range you are looking at max loss which is the price you paid for the spread
@@swaggergist793 YOU WANT IT In a very tight range
@@ivideorandomstuff4591 bro replies to a 2 year old comment. Amazing
What is more beneficial? Selling ATM options or the outer range options
if you worry about whether the option you sold is ATM or not , you are wasting your time
Ethan What do you mean?
@@vinnyvidivici5930 the points to consider when you sell an option are: How much credit you are getting back, what is the RR, what is the the BP reduction, what is the delta etc whether it is ATM or not is not important for two reasons 1) for volatile stocks (whose options we love to sell) this is min it is ITM, next min it can be OTM 2) if you worry about assignment you can always roll or close at the last min
@@ethanluo7355 that makes sense. What volatile stocks do you sell premium on?
@@vinnyvidivici5930 By no means I want to give out invest/trade advice, just for reference purpose, I currently sold put in these stocks: JMIA, LTHM, IPOB, PLTR,VIPS,
hello Sasha, what happens if AM PM calendar spreads on SPX expires ITM?
SPX is cash settled so depending on where your position lands that is the final value of the spread. There's no assignment involved with SPX
I'd like to remind people you can do this without selling a Call or Put if you live in the real world where a lot of traders don't have that $25,000 margin account. Whichever one he said to "Sell" to place the trade (Like sell a put), just "Buy" the same strike call. Example; You can buy a 7/22 $100 Put, and at the same moment, buy an 8/19 $100 Call... if you think the underlying security will go down. (Short play) The Long play would be buying a 7/22 Call and buying an 8/19 Put. Cheers, Edward
You take 50% on the short and sell another against the same long?
How do u do the glass marker. Very nice
Thank you so much. It's a little more complex to explain in the description but I'm glad you enjoyed it
Wjats rhe optimal time to get in before earnings
The day before
What the glass your writing on. It's so cool.
It's called low iron glass
@@tradersflyofficial Hi Sasha, I am planning to make some teaching tutorials for photography, do you mind sharing your Behind the scene setup with this glass. Looks really awesome. Way better than writing on a board where the speaker has to turn his back towards audience. thank you in advance.
Nice job explaining.
Glad it was helpful! Thank you for watching...
But isn't the point of calender spreads to also capitalize on future increases of IV?.. ideally you want to employ this in a low IV situation and looking for future expansion of IV in conjunction with time decay.
You can look at the calendar as more of focusing on implied volatility but that only is relevant if you're doing a longer-term duration spread because that's where the volatility is important. If I'm doing a 9-day calendar spread the volatility is less important since my theta or time value is going to be extremely high.
Hey Sasha! What’s the best way to contact you for future questions? And this just came to my mind so I thought it’s worth asking. So my uncle is the president at this lighting company right and he has a 401k along with other investment plans like IRAs. His stock isn’t doing too swell in any of his accounts, and he blames it on the fact that he picked an aggressive account. But if the stock which pays good dividend is going down, AND it’s an AGGRESSIVE account, why couldn’t the experienced portfolio manager maybe use options like selling calls for insurance? Like wouldn’t that make my uncle more money? I guess my main question is why don’t portfolio managers do a lot with derivative instruments to control risk just in case a customers stock falls? Thanks.
Your question will be answered in detail on Today's episode on #hungryforreturns... just check the latest video on the channel...
Sasha Evdakov: Tradersfly thank you! I appreciate you taking the time to read questions in the the RUclips comments. I really want to learn more about derivatives and your channel is just simply-amazing!
How did you draw on the screen like that??
With a glass screen.
What happens if you don't close out the contract on the 30 option?
You should close out your further duration position. Then you start losing money on your further duration trade.
ay bruh how u write like that on the screen? cuz i would think it would be inverse if it was a clear writing board
What you see is a mirrored video.
I didn’t understand that t + 0 curve
What does that explain ?
That curve is the current curve of your profit and loss. In other words the today's profit or loss.
Sorry that I have not been around for a minute Professor. Been busy with the trucking business.
it's totally okay... Everyone has a life just like I do as well. Glad to see you again and hope to continue to hear more from you in the future.
@@tradersflyofficial Not going anywhere Professor. Just have had to put more time into the trucking company. 5 trucks and still standing, so I guess that's a good thing. I just hate when I let my homework get behind and I have to catch up when I can.
the best!
Has anyone bought his course on option trading? Looking to buy the first or second course he has on them. Was looking for feedback...thanks!
Unfortunately, the "there's more to it" is the part that is important.
What's the difference between Rollover and Hedging in derivatives market , Explain clearly with clear example .
It’s glass he’s writing backwards….. probably not but that would be cool
Yes it's glass but the post production its flipped.
I understand how calenders work, but the way you explain it is so complicated that it is confusing.
Thanks for sharing your feedback.
@@tradersflyofficial I think it's just because there's a lot of complicated stuff involved! You explained time decay with good analogies and it really helped me understand why calendars are bought and sold when they are. Thanks!
actually it was super simple. obviously if you have no idea how options work then yes its complicated.
is this guy writing in reverse to get the mirrored effect?
No. It is flipped in post-production
Not practical. People want to know how rather than why calendar spreads work.
More of the HOW is covered in our 20+ hour course: learn more at rise2learn.com/
5:31 is when you should have started the video.
Starts at zero. Life starts at the beginning. Cutting corners doesn't mean success.
@@tradersflyofficial I think you just like to hear yourself speak. Overall I do like your videos. Your response is a straw man argument, and it has nothing to do with what I commented about. You need a professional editor. But, I also want to say thank you for the videos.