No. of Recommendations: 2
There's no one right way to trade calendar spreads. High IV works very well for me. If you prefer low IV calendar spreads
and have a bullish outlook, you may wish to buy OTM Call or ITM Put calendar spreads. For a bearish outlook, stick with
buying ITM call or OTM put spreads. That's thre really neat thing about calendar spreads--you can design one to match
your market outlook.


This is how I love Calendar spreads. Low Vol with a bullish outlook. I buy the calendar spread out 2 and 5 months or so and buy one strike up. I have limited my vega risk though I probably won't make any money with a IV spike as they usually don't go up with a gradual increase in price.

I have been thinking about bearish put calendar spreads as the IV will go up with the falling price. The favorable theta of the calendar spread appeals to me, over the bearish spreads. I assume you meant credit call spreads above: "ITM Call." Any more thoughts on bearish put calendar spreads?

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