how to make profit in calendar spread strategy in stocks&commodities,give me recommendatons too?

Answer 1

I don't know how you could do a calendar spread in stocks since they don't have an expiration - you could do a calendar spread in options. The typical profit curve in a calendar spread is to buy a far month and sell a near month options of the same underlying and same strike. You are looking for a spread where the near month has higher relative volatility to its expiration than the far month - looking for the near month to expire worthless and gain the profit while still having the far month long AND without much time decay coming out of the option OR at least less than what you gained on the short.

If you are trading options I think you will understand me - sorry if it's confusing - here is a real good options resource if you are interested:

http://www.thetradersresource.com/options-trading.html

Regarding commodity spreads - again you are trying to buy-sell pricing differentials AND in the case of commodities - also doing the spreads based on historical relationships between commodities and given times of the year. Here is a very good resource for commodity spread information:

http://www.mrci.com/

I know your question asked about recommendations - I could give you some and they may even be good ones BUT believe me - the last place you want trading recommendations is from a forum like this and from strangers.

Answer 2

One of my favorite calendar spreads is on GOOG. You buy about 3-5 months out in the money and sell OTM front month options. So, for example, right now, you might buy Jan 380's and sell Oct 420's, then Nov, then Dec and Jan. You'll see how it quickly becomes a favorite.

The only thing is that it takes a bit of capital to do.

Outside of that, there's a number of very good calendars to do. MS, K, or any steady stock that has very good fundamentals to hold its value.

Some friends also do it on the indexes like the Q's. Good way to generate a nice monthly income.

Let me know if you have any questions.

Hope that helps!

Answer 3

Here are two sites with some option strategies you can study:
http://www.888options.com/strategy/default.jsp
http://www.poweropt.com/strategymenu.asp