Do you Calendar Spread?

Is calendar spread a regular strategy for you? If yes, can you give few pointers?

  1. Do you do it in weekly? or monthly?
  2. What do you aim for in strikes ? ( delta values or range wise )
  3. How much paying for debit leg is okay? suppose you sell for rs.50 for week 1, would you buy same leg for week 2 for rs 100? or less than that? do you have any rules?
  4. How many lots would you enter with ? Suppose you do credit spreads for 10-20 lots for comparison.
    Just looking for you experiences with it?

i am a regular trader in calendar spread.
1.i do weekly and monthly according to the market conditions
2.I am not looking delta values
3. i m doing in banknifty so , debit will 450-1400 it depend upon the time
4.mostly 10-20 lots

it is very good strategy, but need lots experience in real market, then only u can identify the pricing of these spreads

Thanks @sarath

Any reason for choosing banknifty ?

What do you mean by market conditions? Direction aside.

How far do you place the strike?

Hi Sarath, has this strategy proven as profitable in the long run (min. 2years) ?

yes ,sir