Master Calendar Spreads With Adjustments For Monthly Income

Learn the art of executing time spreads. An effective non directional strategy for consistent returns

What you'll learn

Master the craft of executing a Calendar spread

Basic of Options Greeks

Correctly setting up a calendar spread and reading the pay off chart using various tools

Skillfully adjusting a Calendar spread

Turning losing trades into Winners

Live examples of Calendar spreads (on Indian stocks)

Requirements

Basics of option trading is a prerequisite. The students should be aware of buying and selling of Call Put options and their functionality

The students should be aware of buying and selling of Call Put options, time decay and their functionality

Description

A calendar spread is an options strategy established by simultaneously entering a long and short position on the same underlying asset but with different delivery dates.In a typical calendar spread, one would buy a longer-term contract and go short a nearer-term option with the same strike price. A calendar spread is most profitable when the underlying asset does not make any significant moves in either direction until after the near-month option expires. Thus taking advantage of the exponential time decay on the nearer month option contract.The purpose of the trade is to profit from the passage of time and/or an increase in implied volatility in a directionally neutral strategy.In this course you'll learn–The rationale, outlook, net position, effects of time decay, appropriate time to trade, selecting the stock, selecting the option, risk profile, advantages/ disadvantages, exiting the position etc. for a calendar spread. -The steps in and out to be taken while creating a the time spread.  -How to execute a calendar spread with the correct technique.- How to read the pay off chart correctly by using tools available online. -How to adjust the trade when it goes against you. -Live examples of trades on Indian stocks. Looking forward to seeing you in this exciting journey and helping you achieve your financial dreams.

Overview

Section 1: Basic Introduction to Calendar spreads

Lecture 1 Introduction

Section 2: Option Greeks (optional)

Lecture 2 Delta

Lecture 3 Gamma

Lecture 4 Theta

Lecture 5 Vega

Lecture 6 Where to find the Greeks ?

Section 3: Placing Your calendar spread in simulation

Lecture 7 Placing the trade in a simulation (Coal India)

Lecture 8 Useful tip 1 - Trade follow up

Lecture 9 Useful tip 2 - Bid offer prices and liquidty check

Section 4: Placing the trade live + follow up week 1, week 2, week3 ( Reliance )

Lecture 10 Placing the trade live + follow up week 1, week 2, week3 ( Reliance )

Lecture 11 Our trade 2 days before expiry

Section 5: Conclusion

Lecture 12 Conclusion

This course is for advance traders who are well versed with option selling and buying and the concept of time decay,If you want to make consistent income or beat the banks yearly interest rates,For people who want to make the most out of their capital,For traders looking to understand the art and tricks of trade adjustments