calendar spread Archives - The Alpha Return

by Vikash Kumar September 13, 2021

Trading Ideas

Weekly Nifty Options Trade Idea 16 September

Nifty seems to have gone up a lot from where it seems to have limited upside left. The probability of correction or range bound trade is higher. So, we have tried to create a low-risk trade for the 16th September Expiry. Technical Analysis In the weekly timeframe, Nifty has formed a Doji near 17382 which is exactly at the Fibonacci extension of 1.7462 from the bottom of the March 2020 crash. There ...

by Vikash Kumar September 6, 2021

How to Take Advantage of Vega (IV) in the Calendar Spread

As we have already explained earlier that Vega is about changes in implied volatility (IV). It is the rate of change of an option’s price on every 1% change in IV. As a result, as implied volatility increases, the option prices increases and Vega goes up if everything remains up: interest rate and DTE. Impact of Time Value or Theta on Vega The vega for an option having more number of days ...