Showing posts with label double calendar spreads. Show all posts
Showing posts with label double calendar spreads. Show all posts

Friday, October 14, 2016

Double Calendars

To increase your probability of success for a longer duration you can increase the width of your profit window by deploying a double calendar spread.  This is similar to an iron condor but with spikes on the end for greater profit, sort of like a double tent.  A double calendar contains a calendar spread on the call and the put side. The profit potential in the middle of the profit window gets smaller as you increase the distance between the strikes on the call and put side.

Again only deploy calendars when there is low volatility and look to exit the trade earlier rather than later.