It takes an average of 23 days for 1, 45 DTE SPY to reach 50% (of maximum profit) winners. This is close to the midpoint of the cycle. Does this apply to varying durations?
In this study, we tested the duration ofwinners for varying expiration cycles: 30, 60, 90, 120, 150, 180, 210, 240, 300 days to expiration. We used our classic SPY 1SD Strangles. We also recorded the average daily P/L for managing winners and compared it to holding-to-expiration.
Watch this segment of Market Measures with Tom Sosnoff and Tony Battista and understand how long it takes to reach 50% winners at a variety of trade durations.