Weekly Newsletter   Challenge account   Weekly Newsletter   


2022 SPX put credit spreads trading review – week 12

My last week’s SPX trading was slow. I was traveling and mostly managing the trades only. I opened only a few new trades but watched old trades expire or closed for target profit.

Last week,the SPX PCS strategy finished up by +2.41% while SPX was up +1.79%. Our overall SPX account is up +95.05% since the beginning of this program. However, we still have -$3,520 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

 

Overall, the strategy resulted in a $165.00 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: $6,856.95
Last week ending value: $7,021.95 (2.41%; total: +95.05%)
The highest capital requirements to trade this strategy: $19,160
Unrealized Gain: -$3,520 (-20.77%)
Realized Gain: $6,827 (+40.29%)
Total Gain: $3,307 (+19.52%)

 

SPX PCS account value
SPX PCS account value
 
Our SPX net-liq dropped last week. If the market is back to normal (hope) then I expect this to be a temporary loss and the account will grow again.
 

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
 

It is evident that the stock market has resumed its recovery and it will be going higher from now on no matter what the bears wish for. It can be a bit choppy ride but it will be a ride up until we hit a wall again. But if so, that wall will only be a temporary break from the rally, little rest shaking out weak hands, and rally continuation afterward. I expect this strategy to perform great in this upcoming market.

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!

 
 





Leave a Reply

Your email address will not be published.