Draft — These backtests have not yet been independently verified. Do not trade based on this data.
Study — Call Trigger to Put Trigger

When the morning flips from calls to puts,
the session usually stays messy —
and closes heavy.

SPY first reaches the daily call trigger, then loses previous day close, then tags the daily put trigger before noon. Across 653 qualifying days, PDC recovery and downside Golden Gate continuation both happen about three-quarters of the time. Getting all the way back to the call trigger is the harder ask.

The daily call and put triggers are the ±23.6% ATR levels around previous day close. This study starts only after a full intramorning reversal: price is above the call trigger at some point, later crosses below PDC, and reaches the put trigger before 12:00 ET. Outcomes are measured from the first put-trigger touch through the RTH close.

Step 01
Call trigger tagged
High reaches the daily +23.6% ATR trigger during the morning.
Step 02
PDC breaks
Later in the morning, low crosses back below previous day close.
Step 03
Put trigger tagged
Low reaches the daily -23.6% ATR trigger before noon.
Sample
653 events
1-minute RTH bars across 6,582 available SPY trading days.

Path rule: rebounds to PDC or the call trigger count only after the first put-trigger bar. Downside ATR levels count from that put-trigger bar onward, so the event starts at the moment the bear-side trigger is live.

73.7%
Recovered PDC
481 / 653 days
75.3%
Opened downside GG
492 / 653 days
43.3%
Recovered call trigger
283 / 653 days
41.2%
Closed below put trigger
269 / 653 days

This is not a clean binary reversal. PDC recovery is common, but downside continuation is just as common. The key difference is distance: a bounce back to PDC is likely; a full retrace back to the morning call trigger is closer to a coin flip.

Outcome after put trigger Rate Yes No
Click any Yes or No count to open the historical dates in the chart drawer.

If you care about first resolution, bearish continuation wins more often. In 58.2% of events, the downside Golden Gate opens before any PDC recovery or opens with no PDC recovery at all. PDC wins that race, or recovers without a downside GG, 41.4% of the time.

32.3%
GG before PDC
211 events
25.9%
GG only
169 events
17.2%
PDC before GG
112 events
24.2%
PDC only
158 events
0.5%
Neither
3 events

Trading read: after the put trigger, PDC is a realistic mean-reversion magnet, but the downside Golden Gate is not invalidated just because PDC later recovers. Both outcomes print often in the same session.

Earlier flips are more volatile. When the reversal completes before 10:30, the -1 ATR touch rate is 23.6%. Across all events, it is 18.5%. Later morning flips still open downside GG at a high rate, but the call-trigger recovery rate drops.

Put time N PDC Call GG open GG comp -1 ATR

The filter uses the latest fully completed hourly bar at the moment the put trigger is touched. If hourly PO compression is active, the event is labeled compression. Otherwise, hourly PO at or above zero is bullish expansion and hourly PO below zero is bearish expansion.

1h PO state N PDC Call GG open GG comp -1 ATR Close < put Bear first

Read: compression is the most bearish filter: lowest PDC recovery at 67.1%, highest close-below-put rate at 44.7%, and bearish GG first/only in 61.9% of events. Bearish hourly expansion has the strongest call-trigger recovery, but it still has elevated downside continuation.

The largest close bucket is below the put trigger. Only 20.5% close back above the call trigger, and another 16.7% close between PDC and the call trigger.

20.5%
16.7%
21.6%
41.2%
Above call trigger
134 days
PDC to call
109 days
Put to PDC
141 days
Below put trigger
269 days
Call trigger touch to put trigger
61m
median · mean 65.4m
PDC cross to put trigger
21m
median · mean 29.8m
Put trigger to PDC recovery
43m
median when recovered
Put trigger to call recovery
109m
median when recovered
Lowest downside excursion
0.564 ATR
median after put trigger
Best upside rebound
0.186 ATR
median after put trigger