SPY Weekly Call Calendar

Every Monday at 10:00 ET this opens an at-the-money call calendar on SPY: it buys the call expiring on the Friday three weeks out and sells the same-strike call expiring this Friday (the long call is bought first, then the short is sold). It profits when SPY stays near the strike and the near call decays faster than the far one; it also gains if implied volatility rises. It closes both legs when the pair is worth 1.25x the debit paid (target) or 0.7x the debit (stop), else at 15:30 ET on the short call's expiry day (or at the next session if a shortened expiry day closes before then). 1 contract each. Capital per multiplier: $1,100, the broker requirement for a calendar: the net debit paid, since the short call is covered by the longer-dated long call. The debit is usually about $500-$800 and has reached about $1,100. Times are US Eastern daylight time; from November to mid-March Tradetron's US clock (fixed UTC-4) runs one hour early, so the same rules fire one hour earlier Eastern (entry at the 09:30 open, exit an hour before the stated time).

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