Steve, I had a lousy time with an SPY jul/aug calendar as well. I started on June 22nd at the open at 91.14, when I bought the 92 strike jul/aug at $1.50. SPY immediately tanked that day to close at 89.28. (Real close to my break even point). On July 9th with SPY way down near 88, I sold half of my 92 strike calendars (for 1.32) and bought an equal number of jul/aug 87 put calendars for 1.82. So wouldn't you know it, SPY shot back up to 92 two days before expriation, where I would have realized my just reward had I not made the downside adjustment. I ended up taking more of a loss than I had originally intended, which is a mistake one doesn't want to make on a consistant basis. To adjust or not to adjust. That is the question.
RFH
--- In OptionClub@yahoogro
>
> Thanks all, for your comments. I got out of this trade late Friday. I agree that to keep the 960 calendar when I added the 880 was the biggest mistake.
>
> Steve
>
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