📅 Friday, August 15, 2025
📍 SPX Close: 6,454
I closed the 3-lot SPX double calendar from Day 31 today, taking a large loss of $1,217 (–23.9%). The market refused to move in either direction after the entry, leaving the position stuck in the worst possible spot: the valley of death between the calendar peaks.
📉 What Went Wrong
Despite being a wide double calendar, SPX barely budged from the open throughout the trade. This type of position thrives on directional movement or volatility expansion — neither of which happened.
As shown in the payoff diagram below, the white price line (SPX) hovered right in the dip between the two green peaks, where both short strikes lose value and long legs don’t expand enough to offset decay. It’s the most dangerous zone for this setup.
🔧 Trade Details (Opened Aug 13)
- Contracts: 3-lot
- Short Legs (Aug 15):
- 6400 Put (STO @ 6.20 cr)
- 6525 Call (STO @ 3.95 cr)
- Long Legs (Aug 20):
- 6400 Put (BTO @ 14.68 db)
- 6525 Call (BTO @ 12.47 db)
- Net Debit: 17.00
- Exit Credit: 13.00
- Loss: –4.00 pts × 3 = –$1,200
- Reported P&L: –$1,217
- Return: –23.9%
- Capital Deployed: $5,100
- Exit Time: 3:22 PM ET
🧠 Lesson Learned
When SPX stays pinned between your short strikes — not close enough to either side to benefit from decay, and not far enough to let your long options expand — the double calendar turns into a slow bleed.
This is a textbook example of why exit timing matters and how staying too long in a stalled market can turn a neutral trade into a high-risk position.
✅ Recap
- Day: 33
- Strategy: SPX 2/7 DTE Double Calendar
- Profit/Loss: –$1,217
- Return: –23.9%
- Status: Closed
- Key Risk Zone: Between 6433.74 and 6503.13 (Valley of Death)
⚠️ Disclaimer: This is my personal trading journal, shared for educational purposes only. Nothing here is financial advice or a recommendation to buy, sell, or trade. Please do your own research and understand the risks before making any trading decisions.