With SPX  at  $2588, I put on an SPX Double Calendar. Here is the 4 Step Risk Management Plan

Step 1: Set Up:  B 1  Dec 8  2600 C, B 1  Dec 8 2560 P,  S 1  Nov 24  2600 C, S 1  Nov 24  2560 P,  $15.20 Debit. Short Strikes  17 Days from Expiration and Long Strikes 31 Days from Expiration. Started my Call Calendar up about 12 points from the current price. Put Calendar was 30 points below the current price.

Step 2:  Profit target and Max Loss: Profit Target 8%, would sell out Double Calendar for $16.40 Credit. If the Debit of the spread goes under $13.80, would sell out Double Calendar for about a 10% loss at $13.80 or $13.70 Credit.

Step 3:  When to Adjust?  Upside, around the short strike of the calls. Downside?  Would look for a possible adjustment the first 2 days of this trade, about 10 points from the short put strike.

Step 4:  How to Adjust?  Upside? Take off the Put Calendar  Downside?  Take off the Call calendar



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