As I enter October, I’ve decided to adjust my trading approach based on backtesting results and recent performance trends. Each month brings its own personality to the market — and October, historically, has been one of the most volatile and unpredictable months.
To stay consistent and protect capital, I’m refining my strategy for 2/7 Double Calendars, 9/23 Double Calendars, and introducing a new Iron Condor automation.
🔹 1. The 2/7 Double Calendar Plan
🧠 Key Insight from Backtesting
During my review of the past few years of October data, the 2/7 DTE (Days to Expiration) Double Calendar strategy didn’t perform as strongly as in other months. Overnight exposure tended to hurt returns due to sharp volatility shifts and gap moves the next day.
🕒 My October Adjustment
To adapt, I’ll:
- ✅ Enter 2/7 DCs on Mondays and Tuesdays at 3:05 PM, same as usual.
- 🚪 Exit by end of the day — no overnight holds this month.
- ⚠️ Skip trades entirely in weeks with high volatility (e.g., CPI, FOMC, earnings-heavy weeks).
This adjustment aims to capture intraday theta while avoiding overnight volatility spikes that have historically eroded profits in October.
October isn’t the month to test patience — it’s the month to respect volatility.
🔹 2. The 9/23 Double Calendar Plan
While 2/7 DCs struggled in October, the 9/23 DCs have shown stable performance in backtests. Their longer duration allows them to smooth out daily volatility and benefit from mid-term theta decay.
🧩 My October Approach
- ✅ I’ll continue entering 9/23 DCs on Mondays and Wednesdays, following my existing automation.
- 🧘 Hold positions overnight as planned, unless delta or vega breaches my defined thresholds.
- 🕰️ Focus on consistency over frequency — fewer trades, more patience.
The 9/23 DCs will serve as the “anchor strategy” this month while the 2/7 DCs take a more defensive role.
🔹 3. New Automation — The Iron Condor (1 lot)
⚙️ Why Add This?
October’s higher implied volatility (IV) creates wider option premiums — making Iron Condors more attractive. Selling premium in a controlled, risk-defined way fits well into my diversified approach.
🛠️ Setup Details
- Structure: 40 Delta Iron Condor
- Width: 25-point wings
- Entry Time: 1:40 PM ET
- Exit Plan: Close for profit before end of day (same-day expiration or manual exit)
- Objective: Small, quick theta gains without overnight exposure
This Iron Condor automation will provide additional opportunities to generate consistent income in high-IV environments while keeping overall portfolio delta neutral.
When volatility is high, premium selling becomes an edge — if managed carefully.
🔹 4. The Big Picture
My October goal is not to maximize profits but to optimize consistency:
- Fewer overnight risks
- Smaller but steadier wins
- Reduced exposure during unpredictable weeks
If September was about momentum and confidence, October is about discipline and adaptability.
🧭 Closing Thoughts
The key lesson from the 1000 Days Challenge so far:
“The market doesn’t reward stubbornness — it rewards adaptability.”
Every backtest, every real trade, and every mistake adds to the evolving framework. This month is about refining that framework further to stay profitable — and calm — through one of the market’s most volatile seasons.
⚠️ 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.