OBC 89: Mail Call – Even More Questions About Time Spreads

  • HOST: MARK LONGO, THE OPTIONS INSIDER MEDIA GROUP
  • CO-HOST: DAN PASSARELLI, MARKET TAKER MENTORING
  • NASDAQ HOT SEAT: MATT AMBERSON, FOUNDER, ORATS

MAIL CALL

  • QUESTION FROM SCOTT SOMER: IF YOU CHOOSE TO DIAGONALIZE YOUR TIME (CALENDAR SPREAD) DO YOU PREFER TO MOVE ONE OPTION TO CREATE “CREDIT SPREAD DIAGONAL” OR “DEBIT SPREAD DIAGONAL?”
  • QUESTION FROM INDELIA: WHAT IS THE RIGHT ENVIRONMENT FOR A TIME SPREAD? 
  • QUESTION FROM B6: I’VE MOSTLY HEARD IT SAID THAT THE MOST YOU CAN LOSE ON A TIME SPREAD IS THE AMOUNT YOU PAY FOR IT. BUT SINCE YOU’RE SHORT MORE GAMMA THAN YOU ARE LONG CAN’T YOU POTENTIALLY GET HIT IN AN EXTREME MARKET DOWNTURN WHERE YOU ARE LOSING MORE ON FRONT CONTRACT THAN MAKING ON SECOND CONTRACT.
  • QUESTION FROM CARMELA: WE’RE ALL LIVING IN A POST-WTI WORLD RIGHT NOW. DO YOU THINK WE’LL SEE MORE COMMODITY PRODUCTS TRADE NEGATIVE IN THE NEAR FUTURE? IF SO, DOES THAT CHANGE HOW WE THINK ABOUT RISK FOR SUPPOSEDLY “LIMITED RISK” TRADES LIKE TIME SPREADS?

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