I have done a little analysis on GOOGL, having had the same thoughts on scale calendars on friday. This is a comparison between googl and vxgo
It’s showing that it takes a couple of days for the volatility to bottom out.
The proper entry probably depend on the calendar being a 30 DTE on the short side, or a 60 DTE.
You probably wanna be a little early on the 30 DTE, and on the other hand wait a few days for the proper entry on the 60 DTE.
This is the risk profile for the 30 DTE
Max risk: 685
Max reward: 1084
RoR: 1.5
Max risk: 495
Max reward: 1256
RoR: 2.5
First trade is more heavier in term of capital, and requires less time to get out (assuming googl stays at 720, you collect 300 in 12 trading days).
Not really sure what’s the best strategy to deploy. Worst case scenario: you need to add a round of calendar when you have 10 DTE, which i think will basically screw up the trade cause there won’t be enough credit to collect.
Thoughts?