Short term
Trade view / 14 June 2016 at 8:20 GMT

UPDATE: Adjustment to the Nasdaq 100 calendar spread

Product Manager, Options Trader, Educator
Price target:
Market price:

Markets have sold off mildly since we initated our volatility (vega) positive, neutral strategy and the QQQs are trading $108.03. As a reminder, to make the most of this trade we need the Q's to trade near our short strike price of 111 by expiration.  

For the first roll we will not make any adjustment to the strike price. Roll out of June 16 111 call into 23 June 16 111 call ( Buy to close June 16/Sell to open 23 June 16 111 call). As of last night, June 16 111 call could be bought at $0.03 while the 23 June 16 111 call could be sold for $0.24. The result will produce a net credit of $0.21 which reduces our initial investment of $0.83 down to $0.62.

We have four weekly expiration to work with until July 16 expiration which gives us plenty of opportunity to not only reduce the cost basis of the calendar but also the market posture on it (from neutral to directional). 

— Edited by Clare MacCarthy

Non-independent investment research disclaimer applies. Read more
fxtime fxtime
cost basis reduction is always a golden rule imho. Prudent management Georgio :-)
Georgio Stoev Georgio Stoev
it certainly increases the prob:) Thanks fxtime! Hope you are in it.:)


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail