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That unfortunate diversion, as you called it, is on me. In my opinion, it makes no sense (or makes it hard) to discuss practical calendar trading without understanding how calendars work and what they are sensitive to. Discussion is even harder when there is negative knowledge aka misconceptions...

George, this was a rhetorical question. I wanted to point out that typical education that opt. traders are exposed to, does not equip them with knowledge to trade independently. Traders are thought some setup, some management steps - that's it. If setup stop working (which is certain) the new...

Well, it was basic knowledge, but it wasn't "just chatting". I did not write just to chat. I must be really bad in conveying thoughts. Just in case I would like to reiterate: What I tried to do was look at the calendar spread from modeling point of view, from the theoretical side. In my opinion...

Pages? I can show you in few sentences why I think is false, or better to say not very good indicator for calendars. theta. Can you briefly explain it, very briefly, one or two sentences should do. I don't gpchat. (And you also should be very careful with ChatGPT. I heard people are calling it...

This is about techicalia. The tool is a simple Python code. It contains essential parts of plain Black-Scholes model and some additional functions to do calendar calculations and plotting. If one is using Python already then no need to read further. Download the script and fire it up. You know...

It time to talk about smth I consider to be the final part of theoretical preparation. I tell about method I used to learn calendar spreads, how individual inputs affect the visual representation of a trade (risk graph) and how they work together, how they interact. I like this way, have used it...

> I have no idea about the charts you are posting This is because we jumped ahead. I will try explain, but this is potentially topic for later. I took all IV values, from all exp. cycles. From those I selected only IV values associated with 6720 strike. Then I plotted this on a graph where x...

George, indeed this is a calendar. But it not a simple one. Do you like it? Would you trade it? Why? Would you rather pass it over? Why? Do you want my opinion? I can give it to you: In short, without going into details - from quick analysis it is to expensive for me. I would not trade it for...

I did misunderstand then. You are right again. To master this we have to look at work with real data. I think I mentioned before that there is a theoretical phase first and then verification what we've learned and then application. We should not look at real data without preparation bc we will...

I did not want to elaborate about meaning of Luck: in trading, thst's why smiley face is there. I definitely did not mean "blind luck", but there is element of randomness involved and skilled traders tried to take as many advantages as he can to shew probability in his favor. It is not warranty...

Some explanation to the sentence you've quoted. I try to spell out much. Cant expand on everything. Questions do help. So, this statement should be read that if we compare IVs from both strikes: IV_long - IV_short the bigger the difference (the higher number, the deeper contango) the worse cal...

I have shown (without live examples for now) that volatility in cycles we want to trade can be very different from what VIX tells. We should look closer. But even if we have Vix-style info for our particular cycles, like putting a calendar in 30 dte cycle, it still want be enough. We must look...

This one will be about using VIX for calendars (actually for all other option trades). I'd' like to start with an analogy - with all caveats about analogies. Imagine you enter a school with where students, say high-schoolers,, are divided between 10 classrooms. Your task is to select a tall...

You are correct. Jim, I knew you knew. It was an opportunity to explain "cal exp line" from another angle. George, you touch interesting topic. I was debating including it to "cal.exp line" post but decided to postpone when we can apply some practicality. As "cal.exp lines" are metal concept...

Yes, I wont argue about the name itself but the point is that character of this line, its behavior, follows what t-lines offer. You may think of "the point" using example of a narrow butterfly (BF - 5pw). Rarely you hold this one to expiration. Say, you set a rule that you enter this at 10 dte...

Let's focus on a risk graph of a calendar spread - something a calendar trader is typically staring at quite often. Take a peek at attached pic. There are four marked lines on it. Line nr4 is the subject of this post. (If this concept is already known to you - ask no questions - we move. Make...

George this is where I'm going to, at least where my aim is. If I'm forced to answer you question right now, I give you my favorite answer: it depends. Seriously. What I mean by this is that there are may types of calendar setups you can trade, and many of them have opposite parameters for...

You, gents, have moved deep into calendar territory. I feel the urge to join you, post some plots, add comments, ask questions etc. I have the impression that often you discuss opposite sides of the same coin, but I prefer stick to the plan I spelled out earlier and continue with basics...

Exactly right.

You are correct that for cal with 1 day gap there will be less impact of IV horizontal skew within a trade. but not negligible. I do not know what your expectations are. That 1 day gap is a temporary restriction, to make trade analysis easier. We will play with life calendars and life chains but...