In thisenvironment, it can be difficult to find securities with premium to sell/high IV. Today, Tom and Tony discuss a long strategy, the Calendar Spread.
Calendar spreads profit fromdecay as well and an increase in volatility. This can be exceptionally complimentary to portfolios that are short vega. The compared to other low IV trades (like and debit spreads) can be a more neutral strategy to get long vega.
Today, we look at simulating a debit put calendar spread, buying the 60 DTE (40 delta put) and selling the 30 DTE at the same. We compare at 10% and 25% of the debit paid along with holding to expiration. Be sure to tune in to see the results!