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subject: Pricing Calendar Spread Options - A Conservative Trading Plan [print this page]


Pricing Calendar Spread Options - A Conservative Trading Plan

Once you initiate the Calendar spread, establish the breakeven (BE) points for your position (the upper and lower BE). If the stock moves to the BE point, make an adjustment by selling half of your original calendar spread and buying the same # of contract in another Calendar spread whose strike price is closer to the BE point. Pricing Calendar Spread Options

Pricing Calendar Spread Options - A Conservative Trading Plan

By: Trading Expert




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