Market Measures

Monday – Friday | 9:00 – 9:20a CT

SPX Calendars: Manage Our Losers?

Market Measures

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

In the past, we found that Calendar Spreads perform best when managed between 10% and 25%. Today we look at the effects of managing losers at 50%.

Study:
  • SPX, 2005- Present
  • Long Put Calendar
    • 60 DTE, Long 40 Delta Put
    • 30 DTE, Short same strike Put
  • Managed winners at 10% or 25% of debit paid
  • Managed losers at 50% of the debit paid
  • All other trades held to front month expiration
Results:
  • Managing winners aggressively helps to boost success rate and mitigating losses
  • Managing losers makes sense theoretically, but this study shows that managing losers actually stops out a large number of trades that eventually become profitable.

Market Measures More installments

See All »

Latest tastytrade Videos As of November 20

Most Shared From the last 30 days