Calendar spreads are all about the IV skews. Although most options traders don’t realize it, they often times enter into calendar spreads at the wrong time and embed losses into their trades by capturing a disadvantageous volatility skew.
Why do option traders do this? Well, options software in general hides volatility information from option traders, and since they cannot see it, they are unaware of the skews they are capturing, either good or bad. Not being able to see the volatility skew that you are capturing when you place a trade will lead to inconsistent results when you trade calendar spreads, among other option spreads.
The designers of OptionColors volatility trading software have solved this major industry problem. We’ve built the tools that option traders need to trade volatility to their maximum benefit.
To get a live demo of how you can potentially double your returns when you trade calendar spreads, book yourself a live demo of OptionColors. We’ll show you our approach, so you can make an educated decision as to your future trading of calendars.
