When to use a double calendar, triple calendar, or single calendar?

Written on March 23, 2008 by OptionsRopeaDope

Dan gets this question in the webcast in the last post… the answer? More calendars feel better. They have a wider break even. Eventually, most traders start with a single and adjust accordingly into a double, triple, etc.

The fact is, single calendars have a higher yield, and the fewer calendars you have on the same underlying in the same month, the higher your yield will be. Multiples also expose you to more vega risk, etc.

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    • Category Posted in Dan Sheridan, Trading Rules, Calendars

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