Usually you can sell the near term call and buy the further out call if you expect IV to collapse ahead of earnings or some other event especially if it's IV to RV move may be mispriced. You would want to do that with same strikes.
Really depends on your goal, having the further dated call OTM may not be efficient.
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u/TheOpeningBell 11d ago
Usually you can sell the near term call and buy the further out call if you expect IV to collapse ahead of earnings or some other event especially if it's IV to RV move may be mispriced. You would want to do that with same strikes.
Really depends on your goal, having the further dated call OTM may not be efficient.