Options Secret to Trading Major Market Events (WITHOUT being in a trade during the event)

[@smbcapital]

Grab your spot at webinar bit.ly/4150SXm

[@anyfoolcanknow]

Double calendar spread around an economic event that is consolidating prior. Short straddle prior for theta. Long straddle after for the breakout move.

[@TheWalrus-c2l]

Interesting strategy. You could presumably use this on individual stocks going into earnings as well.

[@cu8350]

That was a great one Seth! Thanks very much!

[@jutlaw5227]

Thank you for making the video. There is a typo@7:40. Isn't it suppose to be " Cash Received Selling June 17,2016 2000 puts"? sell both call&put before and buy them after Brexit.

[@robcola1]

Correct I saw that too

[@BrentonGill]

Hi Seth is the summary of the Double Calendar Trade correct? The fourth line on the slide (Around 7:12 minutes in) shows the trader selling June 30 2016 2000 puts. Shouldn't that show the trader selling June 17 2016 2000 puts? The strategy as described (Around 6:18 minutes in) seems to buy 2 positions at June 30 and Selling 2 June 17 positions. I don't think both slides can be correct

[@ChristopherMundahl]

you're right, seems to just be a typo on the slide.

[@andycarr231]

I love these videos. What Id love to hear about as well, is how to manage a position that turns against you, and a bit more about risk management in general. Do you have any videos for that?

[@cookiedough5374]

Absolute genius. Thank you.

[@tonysoprano1454]

Can you go over what would happen if the market gapped up or down before your short options expired worthless. We are still net debit so if either leg took a decisive direction you could have some major pain.

[@ChristopherMundahl]

you have the long strangle to protect you, and since it's farther out in time and same strikes it will have a higher delta

[@tonysoprano1454]

@Christopher Mundahl assuming the closer options have a higher delta bc they are closer to expiration say 15-delta difference in a gap down scenario. You're looking at a 1.5k loss? How can you calculate your losses (although finite) for this position?

[@ChristopherMundahl]

@@tonysoprano1454 I see what you're saying now, you're talking about them being in the money. that would be hard to calculate for me, but they both will eventually be close to 1 delta, but the closer dated one would be closer, good point. Good question.

[@justinidiot7161]

roll the short leg out to the long expiry, and at a strike that looks like a debit spread

[@grahamjervis7176]

can this work on earnings calls for companies?

[@rodbrown42]

you could roll the options at 10-14 DTE to 21 DTE assuming you started 45 DTE you might have three rolls in there. I would also use 21+ DTE from the event at my long. The theta should decay even less.

[@Alec693]

For the initial trader sells of calls and puts why would you even bother buying them back? Can't you let them expire worthless if they were sales initially, or am I confusing those with the covered calls/puts strategy?

[@robcola1]

I had the same thought. It doesn't make sense to buy them back the day before they expire worthless.

[@beLIEve77]

To ensure no unexpected event pops up and eats into the 29 grands they already made

[@jianchao88]

Tried this strategy on stock earnings but the back options lost more value than the front options. Anyone experienced this too?

[@surenkhalsa]

Sir…the example shown by you doesn’t seem”market moving”…

[@tonysoprano1454]

Theta gang calendar trade

[@williamchamy3585]

So I have to wait until the market closes?

[@krasnograd]

No, you close during main trading hours

[@mf____]

Don't do this with low liquidity options.

[@dumbcat]

would be interesting if you could provide other examples of 'hold your breath' moments where a strategy like this might work well. Brexit was one in a million

[@kalemphillips8117]

Earnings, FOMC. This occurs most of the time.

[@BrentonGill]

Hi Seth. Super impressed with these SMB Videos. Top notch. I watch them all. I was wondering would the Options vids be improved with the inclusion of an Options Pic of the sample trade for the folks who are more visual learners, for those who don't have maths as a strength or maths just turns them off? To get the idea across e.g. kzbin.info/www/bejne/aqSQmJ-OhsqAa80 as examples. As you would know these pics can also be drawn vertically to line up with the price axis of the instruments charts. The example shows a detailed (Probably over the top for some users) followed by a simple more stylized example. Given your expertise you probably see these charts in your dreams and have software to easily produce them. Thanks for your efforts. I look forward to seeing more videos

[@tonysoprano1454]

This market feels too volatility for theta gang strategies

[@ChristopherMundahl]

short premium strategies work better in volatile environment (you're paid more), but you have to picks delta or add long wings based on what you're willing to risk

[@krasnograd]

I like your videos, but one problem is it’s imaginary samples which may or might not happen. But yes it’s informative video