If you are expecting a bounce, the Call Calendar is the ideal low risk, high reward options strategy

Discussion in 'Traders Corner' started by Michael Gonsalves, Jun 20, 2022.

  1. Michael Gonsalves

    Michael Gonsalves Member Staff Member

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    Unlike investors, Traders have the potential to make money irrespective of whether the market rises, falls or stay sideways. Most top investors like Jhunjhunwala, R. K. Damani etc are also top traders. Experts have explained one such options strategy which is easy to understand & implement

    Most people are content with being investors and are reluctant to trade. This is because there is a stigma attached to trading. However, it is a fact that most top traders such as Rakesh Jhunjhunwala, R. K. Damani, Carl Ichan and **** Tudor Jones are both investors and traders. Even Warren Buffett deals in options though he prefers long-dated Put options.

    One of the biggest advantages of trading is that one can make money irrespective of whether the market is staying sideways or even going down. Investors, on the other hand, can only make money when the market is going up.

    There are several options strategy available to take advantage of every possible situation on the subject. One such strategy is the Calendar spread in which the trader buys a long dated option and sells a short dated one.

    According to Seth Fredburg, an expert, the Call Calendar spread is ideal at the present time because the market is oversold and a bounce is imminent.

    "One of these days, believe it or not, the market is going to finally bounce. In this video we will teach you a very low cost and low risk way to play a bounce that has the potential to create way more return for your risk than you might have thought was possible", he has said.

    He has described the strategy as a "low risk and high reward" one and explained the mechanics.



    80% return per annum

    The Calendar strategy is also explained in a clear manner by Raghunath Reddy, a noted expert. The best part is that the strategy is explained with the aid of backtesting a prior period and explaining how adjustments can be made.

    Raghunath Reddy has also shown that if the strategy is implemented in a systematic manner, it has the potential to give an awesome return of 80% per year.



    Amit Goel has also explained the Calendar Spread and other strategies with utmost clarity.



    These videos will help investors to become budding traders and find financial independence.
     
    Raja Ray likes this.
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