drcruz 116 Report post Posted January 24, 2018 I don't have a subscription to some of the cool back testing tools. So if the Steady Options group is monitoring for entry into a Pre-earnings DOUBLE Calendar Spread AND we are looking to enter the first half of the position is the RV for the trade candidate for each 1/2 or a full position. The reason I'm asking is that the articles explaining the pre-earnings double calendar spreads are based on full positions and it's related RV, but I think you have to divide the full position RV by 2 to enter a half position. Is that right? Thanks for the help Share this post Link to post Share on other sites
Kim 7,436 Report post Posted January 25, 2018 RV has nothing to do with allocation. You can do single, double or 10 strikes - we aim to enter at optimal RV for each spread. Share this post Link to post Share on other sites
Antoxa 14 Report post Posted January 25, 2018 RV is a way to understand if a price of an item you buy is high or low. No matter how many items you buy, you still want the right price. Share this post Link to post Share on other sites
drcruz 116 Report post Posted January 25, 2018 Excellent - Thanks guys Share this post Link to post Share on other sites
greenspan76 299 Report post Posted January 25, 2018 @drcruz You may already have gotten the answer you needed, but the first thought I had when I saw your question was this: When I joined SO around 18 months ago, a member named Dustin posted the RV charts each week on the forums. His charts displayed RV of combined put + call double calendar and you had to divide that in half to know the price for either calendar on its own. For example, if his chart showed RV of 1.5%, we would divide it in half and assume the put calendar was 0.75% and the call calendar was 0.75%. (All this info was in the threads I read when I first joined, but I haven't checked to see if those threads are still out there) Nowadays, Dustin doesn't post his charts anymore and most people are going to either volatilityhq.com or art-of.trading to get their RV data. Each of those sites shows data for put calendars and data for call calendars separately, so you don't have to worry about dividing the RV number in half anymore. 1 drcruz reacted to this Share this post Link to post Share on other sites
drcruz 116 Report post Posted January 25, 2018 @greenspan76 Thanks. I thought I saw one of the double calendar Pre-Earnings articles mention something about a full position's RV being 2x a half position in an example Share this post Link to post Share on other sites
