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2021 SPX put credit spreads trading review – week 51

After a week of increased volatility, the stock market picked up the end of the year steam and rallied. I am pleased to see that my strategy of tactical trading the SPX spreads worked well and during the volatile downtrend the strategy kept me out of the trades and when the market finally turned around, I could enter the trades and profit well from those trades.

Last week, the account increased 20% while SPX increased a little over 2%.

 

Initial trade set ups

 

For my SPX strategy, I dedicated a $3,600 initial amount that will be used to trade SPX PCS strategy per week. If this amount is depleted, I will evaluate the strategy if to continue or change it. If I grow this amount, I will scale up the trading.
 

WHAT WILL WE TRADE?    
DAY DTE TYPE
MONDAY 7 DTE Put Credit Spread
TUESDAY 30 DTE Put Credit Spread
WEDNESDAY 7 DTE Put Credit Spread
FRIDAY 60 DTE Put Credit Spread
EVERY MONTH 120 DTE Put Debit Spread – HEDGE

 

Last week trading

 

DAY SIGNAL TYPE TRADE STATUS
MONDAY Negative No trade opened
TUESDAY Positive New 30 DTE trade opened
credit: $310
Exp: Jan21
WEDNESDAY Positive New 7 DTE trade opened
credit: $320
Exp: Dec29
FRIDAY Positive New 60 DTE trade opened
credit: $85
Exp: Feb28
EVERY MONTH No new trade

 

On Monday, our entry signal was still negative so we didn’t open a new trade.

On Tuesday, the market reversed and rallied in a very strong manner. At first, it looked like the signal would still be negative as the rally didn’t seem to be strong enough to turn the signal positive. But before the end of the day, the signal turned positive and we opened a new 30 DTE trade.

On Wednesday, the market was positive and we opened a new 7 DTE trade.

On Friday, the signal for the 60 DTE trade was positive, so we opened a new 60 DTE credit spread. We didn’t open a new 120 DTE debit hedging trade this week as we will be opening the hedge monthly only.
 

Overall, the strategy resulted in a $715.00 gain last week. Note that the gain might be unrealized as some or all trades may be still open.
 

Initial account value: $3,600.00 (Account inception: 12/07/2021)
Last week beginning value: $3,455.00
Last week ending value: $4,170.00

 

SPX PCS account value
SPX PCS account value
 

SPX PCS account vs SPX
SPX PCS account vs SPX index
 

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