Today tested my patience and decision-making with back-to-back 2/7 Double Calendar trades. One ended flat with a small loss, and the other gave me a solid profit — but the bigger takeaway was about how market conditions shape the effectiveness of this strategy.
📉 Trade 1 — Flat Exit
- Opened: Mon, Sep 22, 2025 @ 3:05 PM ET
- Closed: Tue, Sep 23, 2025 @ 3:55 PM ET
- Underlying: SPX @ 6695
- Lot Size: 10
- Debit Paid: 24.35
- Credit Received: 24.35
- P/L: –$56 (–0.2%)
This position spent most of the day under pressure, at one point showing a –12% drawdown. Toward the final trading hour, it recovered back to breakeven. Instead of holding overnight, I decided to flatten out and call it done.
📈 Trade 2 — Automated Win
- Opened: Tue, Sep 23, 2025 @ 3:05 PM ET
- Closed: Tue, Sep 23, 2025 (same day)
- Underlying: SPX @ 6648
- Lot Size: 9
- Debit Paid: 26.06
- Credit Received: 27.65
- P/L: +$1,385 (+5.9%)
This was an automated entry, and by the close of the day, it delivered a strong profit. With no major events on the calendar this week and the market hovering at all-time highs, I opted to take profits rather than risk an overnight fade.
🧠 Lessons Learned
- DCs Need Volatility Drivers
- The strategy works best when there’s an event (Fed, CPI, earnings, etc.) to spark volatility.
- Without catalysts, a slow, grinding market can suffocate DCs and lead to drawn-out losses.
- Intraday Recovery is a Warning
- A position that swings deep red intraday and then just barely claws back is fragile.
- In these cases, flattening the trade can sometimes be smarter than holding.
- Power Hour Opportunity
- Late-day volume and volatility spikes (“power hour”) can make or break the P/L on these trades. Today, it gave me an exit.
- Theories Need Testing
- My current theory: DCs without a volatility event are vulnerable. Time will tell if backtests confirm this idea, but it’s something I’ll monitor closely going forward.
✍️ Reflection
Not every day is about a home run. Sometimes it’s about recognizing conditions, cutting when needed, and letting the system handle the rest.
Today was about control: one trade ended flat, one delivered profit, but both added to my understanding of when DCs thrive — and when they struggle.
⚠️ Disclaimer
The information presented in this blog post is for educational and informational purposes only and is not intended as financial or investment advice. I am not a licensed financial advisor. All trading strategies discussed reflect my personal experience and are not recommendations to buy or sell any security or derivative.
Trading financial instruments such as options, futures, or stocks involves significant risk and may not be suitable for all investors. You should conduct your own research, consider your financial situation, and consult with a licensed financial advisor before making any investment decisions.
Past performance is not indicative of future results. Use of this information is at your own risk.