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2022 SPX put credit spreads trading review – week 10

Despite horrible market performance last week, our SPX trading did well. Although I wouldn’t trumpet a victory here yet as we have plenty of underwater trades that we are managing (pretty much just pushing them away until the market improves), these trades can give us a hard time and increase losses. For now, we just roll the trade away and provide an offsetting call spread, but at some point in the future, we will have to start unwinding the calls and start adding puts to offset the bad trades. That will require a lot of capital. So, as of today, we are in a cash preservation mode and just rolling or adjusting the trades or letting them expire.

Last week,the SPX PCS strategy finished up by 9.63% while SPX was down -2.88%. Our overall SPX account is up +130.89% since the beginning of this program. However, we still have -$490 in unrealized losses. At some point we will have to work hard to offset those losses.
 

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

 

As I mentioned above, we were just managing our open trades by adding calls to the puts (converting the trades into Iron Condors) or rolling the trades around. Most of the time our effort was successful.

Here are our delayed open trades:
 

SPX PCS delayed trades week 10
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 $730.00 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: $7,581.95
Last week ending value: $8,311.95 (+9.63%; total: +130.89%)
The highest capital requirements to trade this strategy: $19,160
Unrealized Gain: -$490 (-2.74%)
Realized Gain: $5,067 (+28.28%)
Total Gain: $4,577 (+25.55%)

 

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
 

I believe, the end of this messy market is near. We still may see more pain coming in the short term, but we are near the bottom. When the market reverses and the bulls return back, I can see this strategy to be even more profitable.

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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