Not to mention the commissions... If you buy that DC for $0.10 - a 4 option combo - is there going to be any profit left if you sell it for $0.20.... ? On paper it is 100% gain, but what about reality? OK, when the time comes to sell it, probably one of the calendars would be worthless, so you will let one side to expire...
Good thing about ORCL is that it have decent bid/ask spreads.
Probability OF profit and probability FOR profit - I often think about that. But that is broader discussion, not just for this idea about calendars.
Good thing about ORCL is that it have decent bid/ask spreads.
Probability OF profit and probability FOR profit - I often think about that. But that is broader discussion, not just for this idea about calendars.
Hope is dangerous in this game.