Strategy description

Weekly Calendar Strategy – Consolidation-Based Approach

The Weekly Calendar Strategy is a consolidation-focused options selling approach aimed at profiting from periods of limited directional movement in the market.

Entry Criteria:

• The first calendar spread is initiated on Thursday at 9:20 AM, using options of the next week’s expiry.

• Entry is made only if the market is showing signs of sideways consolidation.

• 
  

Exit Condition – Trending Market:

• If the market begins trending strongly in either direction, leading to an expansion in the combined premium above its VWAP, the position is exited immediately to limit exposure.

• 
  

Re-entry Logic:

• Once the market stabilizes and resumes consolidation, the strategy re-enters with a new calendar position at the new strike at ATM.

Final Exit Timing:

• All open positions are squared off by Wednesday at 3:20 PM, or earlier if a fresh trending move is detected.

This disciplined approach helps reduce risk during volatile periods while optimizing theta decay during stable, range-bound market phases.