Double Calendar strategies have gained immense popularity among SPX traders due to their flexibility and potential for high profitability. With NinjaSpread, you can now take your trading skills to the next level by scanning and identifying opportunities for short-term, low-delta Double Calendars on SPX. This guide walks you through the key parameters, how to interpret them, and a ready-to-use preset to get you started!
Try this Preset:
👉 SPX Double Calendar Scanner
Understanding the Key Parameters
Global Settings
NinjaSpread offers intuitive filters for finding strategies tailored to your risk and reward preferences. Here’s a breakdown of the parameters you can use to identify optimal setups:
- NetΔ:
This represents the total delta range for the Double Calendar. In the example, it’s set between -10 and 10, ensuring a delta-neutral strategy. This is ideal for traders looking to reduce directional risk while benefiting from time decay and implied volatility. - R/R (Reward to Risk):
The reward-to-risk ratio highlights the profitability potential relative to the maximum loss. Specifically, it measures the smallest peak profit of the two peaks against the maximum loss. A high R/R ensures a more balanced risk-reward profile. - Range%:
This percentage defines the breakeven range for the structure, showing how far the breakeven points are from each other. Wider ranges generally indicate better resilience to market movements. - Dip$ (Valley Depth):
Double Calendars often feature a “belly” or valley between the two peaks of the profit curve. The Dip$ parameter allows you to filter strategies based on the depth of this valley. For instance, setting it to a minimum of $0 ensures the belly remains above the break-even line, while higher minimum values indicate stronger mid-range profitability. - POP (Probability of Profit):
POP measures the likelihood of the strategy being profitable at expiration. This parameter allows you to filter for setups that offer higher statistical success.
Individual Strategy Controls
Each Double Calendar comprises two parts (Strategy 1 and Strategy 2), which can be independently configured for maximum flexibility.
- Strategy Type:
Choose between Calendar and Diagonal spreads. Both can be mixed and matched to suit your preferences. - Option Type:
Select between Call or Put options, depending on the directional bias you want to incorporate. - Price Range:
Define the price range for the strategy. This helps target opportunities within your budget or specific profitability ranges. - DTE (Days to Expiration):
The number of days remaining until expiration. Short-term setups (like the example) ensure you capitalize on time decay quickly. - FrontΔ (Delta of the Short Leg):
This parameter determines the moneyness of the strategy’s short legs:- OTM (Out of the Money): Set Delta below 50 for legs further from the current price.
- ATM (At the Money): Use values closer to 50.
- ITM (In the Money): Raise Delta above 50.
- Expiration Diff:
Specifies the difference in days between the expiration dates of the short and long legs. This adjusts dynamically with the DTE settings for better alignment. - Skew (IV Difference):
IV skew measures the difference in implied volatility between the short and long legs. Setting it below 0 ensures the short leg has a higher IV than the long leg—a common and desirable setup for Calendars and Diagonals.
Why Use NinjaSpread?
The flexibility and precision offered by NinjaSpread make it a game-changer for SPX traders. Here’s why:
- Customizable Filters: Tailor strategies to match your risk tolerance, profit expectations, and market outlook.
- Save and Automate Alerts: Save your presets to your account and enable alerts. NinjaSpread will notify you whenever new opportunities align with your criteria.
- Advanced Analytics: Use intuitive visualizations to understand complex strategies at a glance.
Join Our Discord Community for Insights and Ideas
Want to take your trading journey even further? Join our exclusive NinjaSpread Discord community to connect with like-minded traders and stay ahead of the curve! Here’s what you’ll get:
- Daily Trade Ideas: Discover what strategies and setups other traders are finding using NinjaSpread. Get inspired and learn from real-world examples.
- Pro Tips and Tricks: Learn how to fine-tune your scans, interpret results, and optimize your filters for maximum profitability.
- Strategy Discussions: Dive deep into the “why” behind specific setups, understand market conditions, and see how others approach similar opportunities.
- Q&A Sessions: Got questions about how to configure a specific filter or interpret certain data? Get instant answers and advice from our expert team and community members.
Our Discord group is the perfect place to share, learn, and grow as an options trader. Don’t miss out on the chance to stay in the loop with the latest market trends and strategy ideas.
👉 Click here to join our Discord now!
We can’t wait to see you there!
Your Next Steps
Start experimenting with this SPX Double Calendar Preset to see how easily you can identify lucrative opportunities. Adjust the parameters, save your filters, and let NinjaSpread do the heavy lifting.
Don’t miss out on the chance to optimize your trading game. Try NinjaSpread today and elevate your options trading to new heights!
