Stocks & Commodities V. 42:01 (52–54, 48): Explore Your Options by Jay Kaeppel

Explore Your Options by Jay Kaeppel

DIRECTIONAL CALENDAR SPREADS

I like the concept of calendar spreads. Unfortunately, the underlying stock goes wild every time I put on an at-the-money. And when I try to go directional with out-of-the-money options, I guess the wrong direction. Any suggestions?

I cant offer any holy grail for timing when individual stocks or indexes will or will not move. But we can create some reasonable rules of thumb for trading directional calendar spreads ...