ATM Calendar Spreads, Are You Aware of the Hidden Gotchas?

Today we have a special guest blogger, A.J. Brown of Trading Trainer.  A.J. Brown is widely recognized as "The World's Most Disciplined Option Trader."  He has been actively trading options for more than 10 years, and has published daily insights for his Trading Trainer members every single night, 5 days a week, since 2002.  Today A.J. will share some of his insights on calendar spreads. Be sure to comment with your thoughts and check out what A.J. is doing with Covered Calls these days at Trading Trainer.
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Over the years of being both an options trader and trainer, I have seen different option strategies that come into and out of vogue.  It seems almost cyclical, like fashion.

For me, every option strategy has its time and place to be traded.  I look at each option strategy as a tool for an application.  Rather than trying to apply a single tool to every situation, I prefer to assess the situation and pick the right tool. Continue reading "ATM Calendar Spreads, Are You Aware of the Hidden Gotchas?"