I’m writing this post to show how I adjusted this trade and my thinking behind it.

I started this put Calendar on SPY on 9/14. My thinking was that we were going to stay within the range and I was looking for 15-20% profit but because markets were so volatile I was willing to make additional adjustments and kept the position size small.

On 9/16 I turned it into a double calendar:

9/21 Market moved down and I move the short legs to adjust deltas:

9/23 was a gap down so I closed one of the calendars and repositioned the shorts get negative delta and turn this into a diagonal as I was expecting a continuation of the move lower:

9/26 market kept moving down and I rolled the long put out and down:

9/29 a Few days later the short had 1DTE and market had move down some more so I rolled down the long put to reduce upside risk:

9/30 Short expired so I closed it and sold another short 7 days out to keep bringing credit and keep reducing risk:

10/3 Market started turning so I rolled the short put up since it was showing a profit and had lost most of its extrinsic value:

10/4 Up move continued so I rolled short put up again:

10/7 I rolled the short out down and out to 7DTE:

10/9 Gave me an opportunity to roll but legs and reposition for a credit and I reduced most of the risk from this position.

Today is 10/11 and this is what I am holding:

On October 13 I ended up CLOSING this trade for 7.30cr with a $628 profit.

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I’ve been trading options for over 15 years. Nowadays I am a contributor at
MrTopTick where I teach advanced options strategies and regularly post my trades. Feel free to join and follow my trades live.