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2022 SPX put credit spreads trading review – week 01

The first week of 2022 didn’t start well yet our SPX strategy performed satisfactorily last week. FED released its FOMC notes and apparently, the notes said something different than what investors could hear at the FED conference talk. So the market sold off. Our signals turned negative and we reversed some of the put spreads into call spreads. If the signals stay negative, we will not be opening new trades next week.

Last week, the account increased 8.72% while SPX decreased by -1.87%.

 

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: $310
Exp: Jan10
Reversed to CCS
TUESDAY Positive New 30 DTE trade opened
credit: $255
Exp: Feb4
Reversed to CCS
WEDNESDAY Negative New 7 DTE CCS trade opened
credit: $430
Exp: Jan12
FRIDAY Negative New 60 DTE trade opened
credit: $95
Exp: Mar18
EVERY MONTH New January 22 hedge trade opened

 

On Monday, our entry signal was positive so we opened a new 7 DTE trade. On Wednesday, the signal turned negative and the trade got in the money after the market’s selloff. We closed the put spread and reopened a new call spread. We are currently sitting in a call spread that is set to expire on Monday if the market stays down.

On Tuesday, our entry signal was positive so we opened a new 30 DTE trade. We also reversed this trade into a call spread.

On Wednesday, the market turned negative. We decided to open a new 7 DTE call credit spread trade. The trade will expire next Wednesday if the market stays down.

On Friday, the signal for the 60 DTE trade was still negative however, we opened a new 60 DTE credit spread. We also opened 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 week 1
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 $455.00 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: $5,215.00
Last week ending value: $5,670.00
The highest capital requirements to trade this strategy: $8,975
Unrealized Gain: $1,035 (+11.53%)
Realized Gain: $1,035 (+11.53%)
Total Gain: $2,070 (+23.06%)

 

SPX PCS account value
SPX PCS account value
 

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:

 

SUBSCRIBE HERE

 

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





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