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2022 SPX put credit spreads trading review – week 15

Last week,the SPX PCS strategy finished down by -0.50% while SPX lost -2.13%. It was because we didn’t trade much. Our strategy is directional and we trade to the upside. When the market is bad, we stay away. From time to time, we take a bearish position (credit call spread) but in this market, it can be a dangerous side. We use credit call spreads to offset costs of rolling trades and they can bite us. Last week, we only adjusted our trades and if the market keeps being negative, we will most likely stay away and only monitor the existing trades.

Our overall SPX account is up +122.00% since the beginning of this program. However, we still have -$3,035 in unrealized losses. At some point, we will have to work hard to offset those losses.

We are also slightly adjusting our trading strategy due to extreme volatility and bearishness and pushing all deltas down. We will collect fewer premiums but stay safer. Once the markets calm down we may become more aggressive again.
 

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 -$40.00 loss last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $8,031.95
Last week ending value: $7,991.95 (-0.50%; total: +122.00%)
The highest capital requirements to trade this strategy: $19,160
Unrealized Gain: -$3,035 (-18.44%)
Realized Gain: $7,436 (+45.18%)
Total Gain: $4,401 (+26.74%)

 

SPX PCS account value
SPX PCS account value
 
Our SPX net-liq retreated a bit last week. The market is volatile too much and our trading activity will be adjusting our existing trades, and opening Friday’s trades, only. We will evaluate case by case which trade to take.
 

SPX PCS account vs SPX
SPX PCS account vs SPX index net liq
 
However, despite our muted trading activity, our account is outperforming the market so far and I hope that it will continue like that. We have a few trades that will need adjustments later during the year and I hope this market will eventually settle so the damage I expect will not be too bad.

 

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.

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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