The last week of the year 2021 was still positive with a bull market intact for our SPX trading. Also, our indicators were bullish, so we opened new trades although these trades are now in the money (not all of them, just two of the most recent trades), we think they will recover because the indicators are unchanged despite the market’s minor pullback. If they do not recover and the market continues down, we will close the positions.

Last week, the account increased 25% while SPX increased a little over 0.85%.

 

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	Positive	New 7 DTE trade opened credit: $285 Exp: Jan3
TUESDAY	Positive	New 30 DTE trade opened credit: $315 Exp: Jan28
WEDNESDAY	Positive	New 7 DTE trade opened credit: $360 Exp: Jan5
FRIDAY	Positive	New 60 DTE trade opened credit: $85 Exp: Feb28
EVERY MONTH	—	No new trade

 

On Monday, our entry signal was positive so we opened a new 7 DTE trade. That trade is still out of the money but the market sits near the short strike. If on Monday selling continues, we will have to close the trade for a loss. If the market rallies, it will expire for a full profit.

On Tuesday, our entry signal was positive so we opened a new 30 DTE trade. The short strike is now in the money but the trade has 27 days to expiration. Since all indicators are bullish, we will wait.

On Wednesday, the market was positive and we opened a new 7 DTE trade. That trade is now fully in the money (both strikes). If the market continues down next week, we will have to close the trade for a loss.

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.
 

Here are our delayed open trades:
 

SPX PCS delayed trades
 

The trades are two weeks delayed. If you want to see the most recent trades or receive alerts, subscribe to our SPX alerts.
 

Overall, the strategy resulted in a $1,045.00 gain last week. Note that the gain might be unrealized as some or all trades may be still open.
 

Initial account value (since inception: 12/07/2021):	$3,600.00
Last week beginning value:	$4,170.00
Last week ending value:	$5,215.00
The highest capital requirements to trade this strategy:	$6,490.00
Unrealized Gain:	$1,510 (+23.27%)
Realized Gain:	$105 (+1.62%)
Total Gain:	$1,615 (+24.88%)

 

SPX PCS account value
 

SPX PCS account vs SPX index
 

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