Replies to post #17631 on Cycle Trading

[JLS]

Re. Diagonal Call Spread,

Since WDC is giving back much of its early gain, I'm processing this trade as one would handle Stock/Option Buy-Writes: Every week I'll be selling Calls against base Calls (instead of against stock as a Buy-Write would do).

So today I BTC the $90 Calls that I sold yesterday, and that yielded a profit.

Then I sold $87.50 Calls that expire next Friday, May 5.

Theoretically if each sale lasts a week, this can be done two more times (on 5/5 and 5/12) before the base Calls expire on 5/19.

This can be done more often than once per week but that choice depends on price movement and option time decay.