Double Calendar in QQQ

[Steven Place]

First, read this.

The premium in the near term nasdaq options is way too high.

And it really tapers off after the next few weeks.

So here’s the trade:

Buy to Open May1/May 87 Call calendar for 0.34

Buy to Open May1/May 84 Put calendar for 0.38

There is a 2% point difference between front month and back month.

We’re looking for 20% return on our risk. If the market sells to 82.50 or 88.50 we will roll the losing calendar up.

[Steven Place]

We’re going to add some upside exposure. This will cut our short delta down significantly as well as increase our theta gains.

Buy May1/May 89 Call butterfly calendar @0.40

[Steven Place]

With the chop the nasdaq has been experiencing, we’ve hit our profit target of 20% on capital.

The short options have 3 days left to expiration, so you ccan try and milk it more here or just close out and ring the register.

[Author]

Posts