A Very Profitable Beginner Friendly Trading Strategy
I have consistently traded options for several years. There are several go-to strategies that I use most often to generate trading income. I like credit spreads, iron condors, butterflies, diagonals, but the short term calendar spread has been the strategy that has made most of my options trading income.
I like short term calendar spreads because they are easy to set up and easy to manage. Calendar spreads do not take too much buying power, and I have been lucky enough to be consistently profitable trading this particular strategy.
My trade set up has been very consistent over the last several years, and I haven’t changed it much because it has worked so well for me.
Calendar spreads are set up by selling an at-the-money call or put, and at the same time, buying another call or put with the same strike price but longer expiration. The trading edge for calendar spreads is that shorter term options experience faster time decay than longer term options. Therefore, the value difference between the shorter and longer-term options should increase over the next several days if the…
