The calendar spread is a low Implied Volatility strategy that entails selling a short-term option while buying an option of the same type further out in time. So when is the optimal time to trade these?
Though the profits weren’t off the charts for this large underlying, calendars have been consistent winners if we managed profits at 10% of capital used.
Additionally, when implied volatility was near the bottom of its range, profits increased in put calendar spreads.
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