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porgie

Calendar vs Straddle/Strangle Trade Distribution

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Just a quick question for the more experienced members. I have noticed that the overall official trade profile is pretty heavy on the calendar side currently--7 out of 9 trades. I realize this likely waxes and wanes as the trading opportunities present themselves, but in general is there usually more of a 50-50 balance between the earnings calendars and straddles. Thanks.

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8 minutes ago, porgie said:

Thanks. That is what I thought. It seems like the calendars have been so cheap on the RV side lately we have cycled into a higher proportion of them which makes sense.

Also....

  • Many of those calendars are still at half allocation sizing.
  • We closed a few straddles for gains at the end of last week, and given that VIX spiked so did a lot of stock's straddle RV.   Entering straddles right after RV spikes typically does turn out so great as RV levels tend to fall over subsequent days and hurt the straddle price (certainly with some exceptions but more times that not RV falls to some degree).  XLNX was opened, but its RV level stayed relatively flat on Friday afternoon and its only going to be open for one or two days.

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