Even with the massive market downturn, this trade wins during the Corona crisis! The good news is we are still trading options and winning! Initially this trade started out as an X4V17 but with the extreme market movement it quickly became apparent that I needed to adapt and flow with the market to win. Take a look at the wild ride this trade took which may have you considering to use calendar spreads in your trading.
As I was watching the market movement while this position was progressing using the X4V17 trading strategy, I realized that my market opinion didn’t match the trading strategy. With an intention of flowing with the market, I switched my position to the X4V22 trading strategy. As time progressed, I added some smaller positions and added calendar spreads to manage the position to a successful conclusion.
A calendar spread is when you buy a long strike and sell the same price short strike in a different expiration cycle. For this example, I bought a long put option in April (far out in time) and sold a short put option in March. So I am selling the March put options and buying April put options.
Yes, calendar spreads can be extremely profitable trades, but only if they are set up properly. Unfortunately, most traders do not truly understand the strategy. Much of the information available on calendar spreads is not only incorrect, but completely opposite of what reality is. Naturally, this results in many traders having poor experiences with calendars. This is perhaps why the tremendous profit making potential in calendar spreads is often overlooked.
What I can tell you for sure is that I am enjoying some great trading profits right now and I want to teach all my tips and tricks to subjective traders about how I am doing that with calendar spreads.
To that end, I am rapidly working on releasing a recorded, complimentary Enriching Session for the PRO Members of the Locke Options Community and will have continuing calendar spread discussions in the biweekly Trading With The Pros sessions.
Learn as much as you can during these extreme market conditions and know that there are neutral trading strategies that have been doing well during the Corona crisis!