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2022 SPX put credit spreads trading review – week 07

Another difficult week is behind us, yet our SPX trading showed nice profits and growth. But it is not as rosy as it may seem from today’s report. We have a few put spreads in the money we will be rolling and these rolls will generate losses. Yes, we are selling credit call spreads to offset those losses but that can be dangerous too. If the market suddenly reverses and rallies in a V-shaped recovery, all those calls will bite us. But we will fight. It is a part of the strategy.

Despite the horrible week, our SPX PCS strategy finished the week up +14.20% while SPX was down -1.58%. Our overall SPX account is up +113.39% since the beginning of this program.
 

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 to determine whether 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 New 7 DTE CCS trade opened
credit: $345
Exp: Feb22
TUESDAY Negative New 30 DTE CCS trade opened
credit: $240
Exp: Mar18
WEDNESDAY Positive New 7 DTE PCS trade opened
credit: $225
Exp: Feb23
FRIDAY Negative No new trade
EVERY MONTH No new trade

 

On Monday, our entry signal was negative and we opened a CCS (credit call spread) trade collecting $345 credit.
 

On Tuesday, our entry signal was negative and we opened a CCS trade collecting $240 credit.
 

On Wednesday, our entry signal turned positive. We opened a new PCS trade collecting $225 credit. Unfortunately, on Thursday it turned decisively negative again and a few of our put spreads got in the money. So we added two new CCS trades on Thursday to collect more credit and prepare for rolling the put spreads next week.
 

On Friday, the signal for the 60 DTE trade was negative and we remained out of the market.
 

We didn’t open any new 120 DTE debit hedging trade this week.
 

Here are our delayed open trades:
 

SPX PCS delayed trades week 7
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 $955.00 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: $6,727.00
Last week ending value: $7,682.00 (+14.20%; total: +113.39%)
The highest capital requirements to trade this strategy: $13,088
Unrealized Gain: $912 (+6.97%)
Realized Gain: $3,155 (+24.11%)
Total Gain: $4,067 (+31.07%)

 

SPX PCS account value
SPX PCS account value
 
Our SPX net-liq increased a bit last week. I consider it a good result since the market is volatile and non-trending, well, it is trending but the trend is choppy and weak.
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 
However, comparing the account with SPX net-liq, we are still outperforming this horrible market.
 

SPX PCS account vs SPX
SPX PCS account vs SPX index
 

If the market continues being this choppy or even going down as fast as it has so far, I expect to use the gains to roll the trades that are in the money.

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.

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 write a comment in the comments section. Thank you!

 
 





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