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Posted by Martin November 26, 2022
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2022 Week 47 investing and trading report


The year is coming to an end. I expected it to be a bad year for our investing and trading. But looking back, our portfolio didn’t do badly. Yes, we are down overall, as many positions are underwater, but we increased our positions. We generated enough options income, which we reinvested into stocks, and increased our portfolio stocks value by 26% this year. We generated over $62 thousand in options income and reinvested $39,939 back buying stocks. These stocks generated more dividends and options income (selling covered calls). And when the market recovers, I expect all the new stock holdings to outperform and generate income. While others were freaking out, panicking, and selling out of their stocks, I was accumulating as much as possible. Those who were selling will be those same people who later will complain that the market is unfair, rigged, and skewed towards rich people being made richer. No, my friends, the only one to blame is yourself.
 

Our NetLiq-cash-buying power ratio is improving:

 
Cash - Net-Liq - BP 46
 

Our trading delivered $5,371.00 premiums last week, ending November 2022, at $2,737.00 (4.08%) options income. Our net-liq value increased by 4.13% to $67,045.39 value. That is still a terrible result but improving. Our overall account is now down -35.93% YTD.
 

Here is our investing and trading report:

 

Account Value: $67,045.39 +$2,769.07 +4.13%
Options trading results
Options Premiums Received: +$5,371.00    
01 January 2022 Options: +$8,885.00 +8.36%  
02 February 2022 Options: +$10,009.00 +10.34%  
03 March 2022 Options: -$1,662.00 -1.47%  
04 April 2022 Options: +$1,047.00 +1.19%  
05 May 2022 Options: +$8,604.00 +11.32%  
06 June 2022 Options: +$9,691.00 +13.73%  
07 July 2022 Options: +$8,717.00 +11.39%  
08 August 2022 Options: +$7,987.00 +12.15%  
09 September 2022 Options: +$2,997.00 +5.76%  
10 October 2022 Options: +$3,979.00 +6.36%  
11 November 2022 Options: +$2,737.00 +4.08%  
Options Premiums YTD: +$62,991.00 +93.95%  
Dividend income results
Dividends Received: $0.00    
01 January 2022 Dividends: $303.38    
02 February 2022 Dividends: $732.81    
03 March 2022 Dividends: $393.74    
04 April 2022 Dividends: $337.31    
05 May 2022 Dividends: $343.99    
06 June 2022 Dividends: $445.80    
07 July 2022 Dividends: $367.66    
08 August 2022 Dividends: $683.58    
09 September 2022 Dividends: $555.20    
10 October 2022 Dividends: $359.89    
11 November 2022 Dividends: $579.67    
Dividends YTD: $5,103.03    
Portfolio Equity
Portfolio Equity: $192,304.47 +$4,361.22 +2.32%
Portfolio metrics
Portfolio Yield: 5.47%    
Portfolio Dividend Growth: 15.73%    
Ann. Div Income & YOC in 10 yrs: $133,939.08 65.39%  
Ann. Div Income & YOC in 20 yrs: $29,672,640.26 14,486.06%  
Ann. Div Income & YOC in 25 yrs: $4,646,992,070.25 2,268,642.06%  
Ann. Div Income & YOC in 30 yrs: $8,089,478,368,794.87 3,949,249,446.43%  
Portfolio Alpha: 88.83%    
Sharpe Ratio: 5.56 EXCELLENT  
Portfolio Weighted Beta: 0.45    
CAGR: 271.08%    
AROC: 62.57%    
TROC: 16.33%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 106.31% COMPLETED
2022 Portfolio Value Goal: $151,638.03 44.21% In Progress
6-year Portfolio Value Goal: $175,000.00 38.31% In Progress
10-year Portfolio Value Goal: $1,000,000.00 6.70% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $0.00 in dividends bringing our November’s dividend income at $579.67.

Last week, we did not purchase any dividend stock.

 
Here is a chart of our account equity showing our accumulation goal and the value of all stocks in our account. It shows a nice upward-sloping chart as our equities grow. This is a result of our options trading and using premiums to buy dividend stocks:

 
Account Equity week 47
 

And here you can see the dividend income those equities pay us every year:

 
Annual Dividend Payout week 47

 

Growth stocks Investing and Trading Report

 

Last week, we purchased no growth stocks.

 

Options Investing and Trading Report

 

Last week options trading delivered a gain of $5,371.00 making our November options income $2,737.00.

 

We were actively trading our SPX strategy that delivered +$902.00 gain.


 

Expected Future Dividend Income

 
We received $0.00 in dividends last week. Our portfolio currently yields 5.47% at $67,045.39 market value.

 
Our projected annual dividend income in 10 years is $133,939.08, but that projection is if we do absolutely nothing and let our positions grow without adding new positions or reinvesting the dividends.

We are also set to receive a $6,890.51 annual dividend income ($574.21 monthly income). We are 5.14% of our 10 year goal of $133,939.08 dividend income.

 
Future Divi on YOC week 47
 

The chart above shows how our future dividend income is based on the future yield on cost and what dividend income we may expect. The expected dividend growth depends on what stocks we add to our portfolio and the stocks’ 3 years’ average dividend growth rate. It is interesting to see what passive income we may enjoy 10, 20, 25, or 30 years from now.

 

Market value of our holdings

 
Our non-adjusted stock holdings market value increased from $187,943.25 to $192,304.47 last week.

In 2022 we plan on accumulating dividend stocks, monetizing these positions, HFEA strategy, and SPX trading. We plan to raise more of our holdings to 100 shares to sell covered calls. We continued rebalancing our options trades that released buying power significantly. That allowed us to start repurchasing shares of our interest.

 
Stock holdings trading week 47
 

We aim to accumulate 100 shares of dividend growth stocks we like and then start selling covered calls or strangles around those positions. We also planned on reinvesting all dividends back into those holdings.
 

Investing and trading ROI

 

Our options trading delivered a 4.08% monthly ROI in November 2022, totaling a 93.95% ROI YTD. If our options income stays at this level by the end of the year, we will exceed our 45% annual revenue goal in selling options against dividend stocks.

Our entire account is still down -35.93%.
 

Our options trading averaged $5,726.45 per month this year. If this trend continues, we will make $68,717.45 in trading options in 2022. As of today, we have made $62,991.00 trading options.
 

Old SPX trades repair

 

We traded our SPX put credit spread strategy, which you will be able to review in my next report. The SPX strategy has held well so far, and our signals kept us from opening new aggressive trades.

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account trading Net-Liq week 47

This drawdown of our account is extremely discouraging. It’s like all previous gains were all wiped out. But this is just a temporary drawdown. I am not selling any stock positions despite the losses. I will keep buying more shares if possible. I also have losses in my options trades. I am rolling those trades to keep them alive and adjusting them slowly, one by one, until they expire as winners. Then, this terribly-looking chart improves. It will be a long process to get back up, but I am determined.
 

Account Stocks holding

 
TW Account holdings week 47
 

Last week, S&P 500 grew 39.18% since we opened our portfolio while our portfolio grew 15.09%. On YTD basis, the S&P 500 fell -25.58% and our portfolio -14.68%. We are outperforming the market.

The numbers above apply to our stock holdings only.
 

Stock holdings Growth YTD

 
TW Account holdings Growth YTD
 

Our stock holdings are starting to outperform the market. Hopefully, this trend will stay, and we will constantly do better than S&P 500.
 

Our 10-year goal is to grow this account to $1,000,000.00 value in ten years. We are in year two, and we accomplished 6.70% of that goal.
 

Our 6-year goal is to reach $175,000 account value to be eligible for portfolio margin (PM), and today we accomplished 38.31% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03, and today we accomplished 44.21% of this goal.

I am afraid our account is no longer on track to accomplish our 2022 year goal. We may accomplish our dividend and options income goals, but our account balance (Net-Liq) will be down significantly. Of course, if the market finally rallies by the end of the year, it may all change, but if not, we will fail.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 47
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 47
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 47
 

We planned to make $4,800.00 in dividend income in 2022. As of today, we received $5,103.03. This week, we completed our 2022 dividend goal. We also accumulated enough shares to start making $6,890.51 a year. Our monthly projected dividend income is $574.21, and our current monthly dividend income is $425.25.
 

TW Received vs Future Dividends week 47

 

I have a favor to ask. If you like this report, please, hit the like like button button so I know that there is enough audience that like this content. Also, if there is something you want to know or you want me to change this report to a different format, let me know in the comments section.

 
 




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Posted by Martin November 26, 2022
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2022 SPX put credit spreads trading review – week 47


We have many open SPX trades that, earlier this year, went in a bad direction. These trades are now in the money. I adopted box trades to help fix these trades. A box trade is a strategy that can be used in many ways. It can be used as a bond (when you buy a box, you store your cash and get a fixed “interest,” and you collect it all at the end of the cycle), or you can use it to collect premium that can be used to offset your other trades (when you sell a box). Of course, selling the box itself will not work if you let it expire in the money. For this to work, the box has to be adjusted too. But it can be done later. In the meantime, you collect enough premiums to adjust two to three trades now and adjust the box a few months later too. And that is what I am doing now to unload many of the trades that turned bad. They are fixed and set to expire worthless, releasing buying power and generating profits.
 

Our trades delivered a $902.00 gain. Our account weekly trading is down by 2.43% while SPX gained 1.53%.
 

Our SPX account is up +955.08% since the beginning of this program, and we have $38,789 in unrealized gains.

 

Initial SPX trade set ups

 

I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. Today, the account is up at $37,982.95. However, due to the recent bear market, many trades are still open, and the funds are tied to those open trades. The trades need to expire or be closed for a profit to release the funds.
 

Our SPX strategy is designed as directional options trading. We are selling credit put spreads to collect premiums, and hopefully, these spreads expire worthlessly, or we repurchase them for a small debit.

We use a set of indicators (primarily based on moving averages and volume profiles) and market sentiment that generates bullish signals. The trading is based on a “trend-following strategy.” We open the trade if we have a bullish signal and a bullish trend. If we do not have a signal, we stay away. We also trade credit call spreads when we have bearish signals. In a choppy market, we stay away from or trade very short expirations (usually 1 or 2 days or up to 7 days), but the trading is muted as we need a trending market. Unfortunately, today, we do not have a trending market (yes, overall, it is a down-trending market, but for short-term trades, it is choppy and not trending).
 

Here you can see all our trades:

 
SPX PCS account value
Click on the picture above to see the entire list.
 

Last week trading

 

Overall, the strategy resulted in a +955.08% gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $37,702.95
Last week ending value: $37,982.95 (+2.43%; total: +955.08%)
The highest capital requirements to trade this strategy: $19,995
Current capital at risk: -$12,789
Unrealized Gain: $38,789 (-303.30%)
Realized Gain: -$4,430 (34.64%)
Total Gain: $34,359 (-268.66%)
Win Ratio: 56%
Average Winner: $319
Average Loser: $485

 

SPX PCS account value
SPX PCS account value
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 

SPX PCS account vs SPX
SPX PCS account vs SPX index
 

If you want to receive trade alerts whenever we open a new SPX put credit spread or a hedge trade, you can subscribe to our service:

 

 

Note that if you wish to subscribe to multiple levels, you can only subscribe to one level and send us an email that you want to be added to other levels.

Also, if you like this report, hit the like button so I know there is enough audience wanting to see this type of report. If you have any questions or want to see anything else about my SPX trading, do not hesitate to contact me or comment in the comments section. Thank you!

 
 




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Posted by Martin November 26, 2022
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11.25.22 – FRIDAY MARKET OUTLOOK


Market Outlook
 

Yesterday, the markets were closed. Today, we had a shortened session. The markets closed at 1 pm ET. Many traders and investors were on holiday and not participating. Volume was weak, and price action was muted. We still have no resolution on the direction. The SPX is sitting right below its 200-day MA and slightly retreated from that zone today. None of what we see is bullish. We need bulls to step in and break this pattern. The VIX is extremely bullish, and we are hoping we may finally break above and start a new bullish trend. But we need to wait and see.

 
Market Outlook
 

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Posted by Martin November 24, 2022
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11.23.22 – WEDNESDAY MARKET OUTLOOK


Market Outlook
 

The markets continued higher when the FOMC meeting minutes indicated that the FED may slow down their interest hike pace. VIX futures are in strong contango so I expect the markets to go higher. But again, the volume is low so this can be deceptive. However, we will see an elevated market by the end of this week for sure. Next week will be important.
Also, markets are closed tomorrow for Thanksgiving Day and on Friday the markets will close early at 1 pm ET.

 
Market Outlook
 

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Posted by Martin November 23, 2022
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11.22.22 – TUESDAY MARKET OUTLOOK


Market Outlook
 

The consolidation continues, and I expect the market to continue higher this week. But be careful. Due to the Holidays, many traders and investors are off, so the volume is extremely low. If we see gains this week, the most important thing will be what will happens after the holidays. Will we keep and build on this week’s gains or sell them off? For now, we will go higher (good for credit put spreads or debit call spreads). Next week, we will see.

 
Market Outlook
 

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Posted by Martin November 23, 2022
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Technical view: ARK Innovation (ARKK)


Technical view
 

ARKK is in stage #4. A week ago, the stock saw a great rebound when ARKK jumped from $32 lows to $40. But that bump didn’t last long. Last week, the stock reversed again and dropped erasing half of the previous week’s gains. The weekly chart provides some hope that the stock may still move into stage #1 or even stage #2 if the weekly trend holds. I still wouldn’t invest in this stock.

 
Technical view
 

The stock is now HOLD
 

This post was published in our newsletter to our subscribers on Saturday, November 19th, 2022. If you want to learn more about our stock technical analysis subscribe to our weekly newsletter.
 




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Posted by Martin November 22, 2022
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11.21.22 – MONDAY MARKET OUTLOOK


Market Outlook
 

The market keeps sliding in a pattern that can be considered a consolidation of the previous gains. If we wanted to crash, we would already do so. Looking at VIX in a strong contango, this price action is somewhat positive and may result in a higher spike. Of course, it may also crash, but as of now, the market is neutral, and it will probably be so the entire week until after Thanksgiving Day.

 
Market Outlook
 

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Posted by Martin November 19, 2022
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2022 Week 46 investing and trading report


I feel like the markets are easing their bearish stance. They are still extremely volatile and choppy intraday, but we are poised for a rally that may last until the end of this miserable year. Our investing and trading last week reflected this stance. We opened a few small credit spreads against our holdings to monetize our positions. Many of these trades just expired for a full profit last Friday.
 

Our NetLiq-cash-buying power ratio is improving. Not anything extraordinary, though. I am still angry with my broker and how they handle my margin and buying power. I consider it a terrible service when one minute, my BP is up $5,000, and after I open a defined risk trade (like a spread), the margin drops to -$2,000 within a few minutes after opening the trade. Then, they cannot handle multiple open SPX trades and have to manually adjust my buying power (I am on their “manual adjustment list”). But sometimes, they forget to adjust, and I wake up to this:

 
margin
 

With this buying power, I cannot do anything with my trades. I cannot adjust, roll, or even close a trade. I have to contact them and tell them to adjust my buying power. But first, I must go through ridiculous requirements when they tell me to close the trades that cause negative BP. I asked them which trades are causing it (I know there are none, as risk-defined trades like spreads cannot cause this at all). They have no answer. After an hour or so of arguing, they finally realized that they had forgotten to adjust my account. This is not acceptable. Such an account is not tradeable. So I decided to change brokers.

 
Cash - Net-Liq - BP 46
 

Our trading delivered $352.00 premiums last week, ending November 2022 at -$2,634.00 (-4.10%) options income. Our net-liq value decreased by -2.68% to $64,276.32 value. That is still a terrible result. Our overall account is now down -38.58% YTD.
 

Here is our investing and trading report:

 

Account Value: $64,276.32 -$1,725.21 -2.68%
Options trading results
Options Premiums Received: $352.00    
01 January 2022 Options: +$8,885.00 +8.36%  
02 February 2022 Options: +$10,009.00 +10.34%  
03 March 2022 Options: -$1,662.00 -1.47%  
04 April 2022 Options: +$1,047.00 +1.19%  
05 May 2022 Options: +$8,604.00 +11.32%  
06 June 2022 Options: +$9,691.00 +13.73%  
07 July 2022 Options: +$8,717.00 +11.39%  
08 August 2022 Options: +$7,987.00 +12.15%  
09 September 2022 Options: +$2,997.00 +5.76%  
10 October 2022 Options: +$3,979.00 +6.36%  
11 November 2022 Options: -$2,634.00 -4.10%  
Options Premiums YTD: $57,620.00 +89.64%  
Dividend income results
Dividends Received: $472.57    
01 January 2022 Dividends: $303.38    
02 February 2022 Dividends: $732.81    
03 March 2022 Dividends: $393.74    
04 April 2022 Dividends: $337.31    
05 May 2022 Dividends: $343.99    
06 June 2022 Dividends: $445.80    
07 July 2022 Dividends: $367.66    
08 August 2022 Dividends: $683.58    
09 September 2022 Dividends: $555.20    
10 October 2022 Dividends: $359.89    
11 November 2022 Dividends: $579.67    
Dividends YTD: $5,103.03    
Portfolio Equity
Portfolio Equity: $187,943.25 -$3,918.99 -2.04%
Portfolio metrics
Portfolio Yield: 5.53%    
Portfolio Dividend Growth: 15.73%    
Ann. Div Income & YOC in 10 yrs: $135,714.12 66.86%  
Ann. Div Income & YOC in 20 yrs: $31,183,361.87 15,363.54%  
Ann. Div Income & YOC in 25 yrs: $5,046,561,151.40 2,486,360.09%  
Ann. Div Income & YOC in 30 yrs: $9,161,569,652,306.39 4,513,759,062.79%  
Portfolio Alpha: 84.54%    
Sharpe Ratio: 6.41 EXCELLENT  
Portfolio Weighted Beta: 0.45    
CAGR: 269.35%    
AROC: 57.51%    
TROC: 11.03%    
Our 2022 Goal
2022 Dividend Goal: $4,800.00 106.31% COMPLETED
2022 Portfolio Value Goal: $151,638.03 42.39% In Progress
6-year Portfolio Value Goal: $175,000.00 36.73% In Progress
10-year Portfolio Value Goal: $1,000,000.00 6.43% In Progress

 

Dividend Investing and Trading Report

 
Last week we have received $472.57 in dividends bringing our November’s dividend income at $579.67.

Last week, we did not purchase any dividend stock.

 
Here is a chart of our account equity showing our accumulation goal and the value of all stocks in our account. It shows a nice upward-sloping chart as our equities grow. This is a result of our options trading and using premiums to buy dividend stocks:

 
Account Equity week 46
 

And here you can see the dividend income those equities pay us every year:

 
Annual Dividend Payout week 46

 

Growth stocks Investing and Trading Report

 

Last week, we purchased no growth stocks.

 

Options Investing and Trading Report

 

Last week options trading delivered a gain of $352.00 making our November options income -$2,634.00.

 

We were actively trading our SPX strategy that delivered -$622.00 loss.


 

Expected Future Dividend Income

 
We received $472.57 in dividends last week. Our portfolio currently yields 5.53% at $64,276.32 market value.

 
Our projected annual dividend income in 10 years is $135,714.12, but that projection is if we do absolutely nothing and let our positions grow without adding new positions or reinvesting the dividends.

We are also set to receive a $6,890.51 annual dividend income ($574.21 monthly income). We are 5.08% of our 10 year goal of $135,714.12 dividend income.

 
Future Divi on YOC week 46
 

The chart above shows how our future dividend income is based on the future yield on cost and what dividend income we may expect. The expected dividend growth depends on what stocks we add to our portfolio and the stocks’ 3 years’ average dividend growth rate. It is interesting to see what passive income we may enjoy 10, 20, 25, or 30 years from now.

 

Market value of our holdings

 
Our non-adjusted stock holdings market value decreased from $191,862.25 to $187,943.25 last week.

In 2022 we plan on accumulating dividend stocks, monetizing these positions, HFEA strategy, and SPX trading. We plan to raise more of our holdings to 100 shares to sell covered calls. We continued rebalancing our options trades that released buying power significantly. That allowed us to start repurchasing shares of our interest.

 
Stock holdings trading week 46
 

We aim to accumulate 100 shares of dividend growth stocks we like and then start selling covered calls or strangles around those positions. We also planned on reinvesting all dividends back into those holdings.
 

Investing and trading ROI

 

Our options trading delivered a -4.10% monthly ROI in November 2022, totaling a 89.64% ROI YTD. If our options income stays at this level by the end of the year, we will exceed our 45% annual revenue goal in selling options against dividend stocks.

Our entire account is still down -38.58%.
 

Our options trading averaged $5,238.18 per month this year. If this trend continues, we will make $62,858.18 in trading options in 2022. As of today, we have made $57,620.00 trading options.
 

Old SPX trades repair

 

We traded our SPX put credit spread strategy, which you will be able to review in my next report. The SPX strategy has held well so far, and our signals kept us from opening new aggressive trades.

 

Investing and trading report in charts

 

Account Net-Liq

 

TW Account trading Net-Liq week 45

This drawdown of our account is extremely discouraging. It’s like all previous gains were all wiped out. But this is just a temporary drawdown. I am not selling any stock positions despite the losses. I will keep buying more shares if possible. I also have losses in my options trades. I am rolling those trades to keep them alive and adjusting them slowly, one by one, until they expire as winners. Then, this terribly-looking chart improves. It will be a long process to get back up, but I am determined.
 

Account Stocks holding

 
TW Account holdings week 46
 

Last week, S&P 500 grew 37.08% since we opened our portfolio while our portfolio grew 13.19%. On YTD basis, the S&P 500 fell -27.68% and our portfolio -16.58%. We are outperforming the market.

The numbers above apply to our stock holdings only.
 

Stock holdings Growth YTD

 
TW Account holdings Growth YTD
 

Our stock holdings are starting to outperform the market. Hopefully, this trend will stay, and we will constantly do better than S&P 500.
 

Our 10-year goal is to grow this account to $1,000,000.00 value in ten years. We are in year two, and we accomplished 6.43% of that goal.
 

Our 6-year goal is to reach $175,000 account value to be eligible for portfolio margin (PM), and today we accomplished 36.73% of that goal.
 

Our 2022 year goal is to grow this account to a $151,638.03, and today we accomplished 42.39% of this goal.

I am afraid our account is no longer on track to accomplish our 2022 year goal. We may accomplish our dividend and options income goals, but our account balance (Net-Liq) will be down significantly. Of course, if the market finally rallies by the end of the year, it may all change, but if not, we will fail.

 

Investing and Trading Report – Options Monthly Income

 
TW Options Trading Income week 45
 

Investing and Trading Report – Options Annual Income

 

TW Options Annual Trading Income week 46
 

Our dividend goal and future dividends

 

TW Received vs Projected Dividends week 46
 

We planned to make $4,800.00 in dividend income in 2022. As of today, we received $5,103.03. This week, we completed our 2022 dividend goal. We also accumulated enough shares to start making $6,890.51 a year. Our monthly projected dividend income is $574.21, and our current monthly dividend income is $425.25.
 

TW Received vs Future Dividends week 46

 

I have a favor to ask. If you like this report, please, hit the like like button button so I know that there is enough audience that like this content. Also, if there is something you want to know or you want me to change this report to a different format, let me know in the comments section.

 
 




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Posted by Martin November 19, 2022
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2022 SPX put credit spreads trading review – week 46


Last week was hectic trading. The markets were flat overall, but intraday, they were choppy and unpredictable. Trading SPX was difficult. We didn’t open any new trades; rather, we managed the old ones to let them expire worthless. That cost some money as many of these trades are debit trades. But in the past, we collected enough credit, and we can afford to use that credit to adjust older trades.
 

Our trades delivered a -$622.00 loss. Our account weekly trading is down by -1.65% while SPX lost -0.69%.
 

Our SPX account is up +930.03% since the beginning of this program, and we have $39,077 in unrealized gains.

 

Initial SPX trade set ups

 

I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. Today, the account is up at $37,702.95. However, due to the recent bear market, many trades are still open, and the funds are tied to those open trades. The trades need to expire or be closed for a profit to release the funds.
 

Our SPX strategy is designed as directional options trading. We are selling credit put spreads to collect premiums, and hopefully, these spreads expire worthlessly, or we repurchase them for a small debit.

We use a set of indicators (primarily based on moving averages and volume profiles) and market sentiment that generates bullish signals. The trading is based on a “trend-following strategy.” We open the trade if we have a bullish signal and a bullish trend. If we do not have a signal, we stay away. We also trade credit call spreads when we have bearish signals. In a choppy market, we stay away from or trade very short expirations (usually 1 or 2 days or up to 7 days), but the trading is muted as we need a trending market. Unfortunately, today, we do not have a trending market (yes, overall, it is a down-trending market, but for short-term trades, it is choppy and not trending).
 

Here you can see all our trades:

 
SPX PCS account value
Click on the picture above to see the entire list.
 

Last week trading

 

Overall, the strategy resulted in a +930.03% gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $37,702.95
Last week ending value: $37,702.95 (-1.65%; total: +930.03%)
The highest capital requirements to trade this strategy: $19,995
Current capital at risk: -$13,077
Unrealized Gain: $39,077 (-298.82%)
Realized Gain: -$5,660 (43.28%)
Total Gain: $33,417 (-255.54%)
Win Ratio: 56%
Average Winner: $317
Average Loser: $485

 

SPX PCS account value
SPX PCS account value
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 

SPX PCS account vs SPX
SPX PCS account vs SPX index
 

If you want to receive trade alerts whenever we open a new SPX put credit spread or a hedge trade, you can subscribe to our service:

 

 

Note that if you wish to subscribe to multiple levels, you can only subscribe to one level and send us an email that you want to be added to other levels.

Also, if you like this report, hit the like button so I know there is enough audience wanting to see this type of report. If you have any questions or want to see anything else about my SPX trading, do not hesitate to contact me or comment in the comments section. Thank you!

 
 




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Posted by Martin November 19, 2022
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11.18.22 – FRIDAY MARKET OUTLOOK


Market Outlook
 

We have seen weakness in the markets again. Choppy trading with a slight drift lower. Again, this speaks to the possibility of the market spiking higher again. If it wanted to crash, it would have already done that, considering all the FED talks about more tightening needed, higher rates at 5% to 5.75% not being restrictive enough, and other bullshit the FED was feeding us with, and the market held. If this were a problem, we would be falling like a rock. Bears are also exhausted as all those who wanted to sell have already sold, and speculators are weak to push this lower. The only concerning thing is that the VIX structure is flattening, but overall, we are still positioned upward.

 
Market Outlook
 

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