Let’s examine the relationship between SPX and VIX while looking at a long call spread.
Listen to Options Playbook Radio 209: Long Call Spread with a Possible Roll
We are back in the saddle discussing options strategies. With the VIX in the low- to mid-teens, that makes for an interesting time to look at volatility. We are going to look at a long call spread, possibly with a roll. You can find more in The Options Playbook, which is always available on OptionsPlaybook.com, or on the Amazon Kindle edition.
Specifically:
- Indexes and volatility
- Looking to do this trade for positive theta
- Selecting expriations
- What’s a time bomb butterfly?
- Setting up the trade
- Selecting strikes
- What do we want to happen?
- What is the max risk? Reward?
- To adjust or not to adjust?
Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.