RED Option Equity Calendar:

Finally, a fun and easy-to-execute strategy for everybody. With the Red Option Equity Calendar Advisory, you'll find low volatility, non-capital intensive trade recommendations. This is a G-rated, all-ages show. Calendar spreads are widely used by all levels of traders because they offer defined risk, no margin, rolling opportunities and wide profit windows.

A calendar spread is a simple, two-legged option spread. It is the simultaneous sale of a near-month call or put and the purchase of a back-month call or put at the same strike price in the same underlying. Equity calendar spreads profit when a stock moves toward the short strike or remains in a reasonable trading range until the front-month position is closed or rolled.

All the calendar recommendations will be defined risk debit spreads. Our Chief Strategist will select trades that meet both our risk criteria and our expectations of achieving price targets. We will recommend at least two multiple-month equity calendar spreads every expiration cycle based on stock price, volatility, liquidity and spread price. We suggest this strategy for any size account seeking a medium-term position with defined risk and positive decay.

We created this advisory to offer RED Option clients the ability to achieve an approximately 1:1 risk/reward ratio. Auto-trade clients are likely to receive a better execution price due to large order, negotiated pricing on spreads.

Example of an Equity Calendar Spread: