XOM

We need to watch implied volatility, which is getting more and more inexpensive. With a major crush in volatility and a heavy market on our hands calendar spreads are looking more and more attractive. Normally I will set calendars 15-25 days out, but with current market conditions calendar spread could be set and traded on a week to week basis. I will set 1 or 2 calendars on Monday and trade in and out of them through out the week. In situations like this I like to trade equity calendars. Above I have an example of a put calendar on XOM. Now with this example you could set this trade and close this trade the following Monday May 18th. XOM can trade in a range between 67 and 73 to make 10%. Now $150 to $180 might seem small but if you do that every week trading short term calendars you could make an extra $7,800-$9,360 per year. Each week I will be setting 1-2 of these trades and will keep you posted on what I am doing.