RED Option Index Calendar:

With the Red Option Index Calendar, you'll find the index equivalent to our Equity Calendar Spread Advisory. It's the same general concept but the index spreads can cost more, using indices and ETFs.

Index calendar spreads afford all the spread characteristics you look for, including defined risk, no margin, rolling opportunities and wide profit windows. These spreads profit when an index moves toward the short strike or remains in a reasonable trading range until the front-month position is closed or rolled.

An index calendar, similar to an equity calendar spread, is a simple, two-legged option spread. It is the simultaneous sale of near-month call or put and the purchase of a back-month call or put at the same strike price in the same underlying.

All index calendar recommendations will be defined-risk debit spreads. We will use the primary major market indexes and ETFs. Our Chief Strategist finds trades where the spread pricing offers high probabilities of the index landing in a profitable range. We will recommend at least two multiple-month index calendar spreads every expiration cycle based on index price, volatility, liquidity and spread price.

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 our expertise in working large index orders on the exchanges.

Example of an Index Calendar Spread: