mks212 0 Report post Posted December 21, 2012 Kind of a broad question. How do we decide which of these range bound trades are the best to execute? I've noticed very few vertical spreads (I want to say none, but am not 100% sure) on this forum. I could go into specifics on certain trades we've done, and also some that I have in mind, but I'd like to leave it broad to understand how people approach this. Thanks. Share this post Link to post Share on other sites
Kim 8,043 Report post Posted December 21, 2012 We don't do verticals since those are directional trades. Bufferfly and IC are vega negative trades, calendars are vega positive. There are no firm rules, but I personally don't do IC when RVX is below 25. Just my personal rule of tumb. If you do SPY calendar, it should be a good trade with VIX around 16-17. In general, you want to do a calendar when the IV is in the low third of the recent range. 2 Share this post Link to post Share on other sites
