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2022 SPX put credit spreads trading review – week 16

Our SPX PCS strategy finished up by 24.27% while SPX lost -2.75%. Last week was a horrible week. The market lost over 5% in two days based on fear of the FED raising rates “too aggressively”. But our account was up significantly.

But there is nothing much to celebrate. All I was doing was adjusting the old trades and adding hedges against them. I was adding call spreads because my old put spreads were in the money and I will have to roll them at some point in the future. My rationale behind this was to bring in as much credit as possible by selling call spreads and hopefully buy the call spreads back for cheap, then roll the put spreads and add new call spreads to bring in more credit to offset the cost of rolling the put spreads. So, this week’s large income may disappear in the next coming weeks.

Our overall SPX account is up +175.89% since the beginning of this program, and we have -$380 in unrealized losses. At some point, we will have to work hard to offset those losses.

During this volatile and sideways market, we will be trading Friday’s trades only until the market sets the direction it wants to go.
 

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 $1,940.00 gain last week.
 

Initial account value (since inception: 12/07/2021): $3,600.00
Last week beginning value: $7,991.95
Last week ending value: $9,931.95 (+24.27%; total: +175.89%)
The highest capital requirements to trade this strategy: $19,160
Current capital at risk: $16,380
Unrealized Gain: -$380 (-2.32%)
Realized Gain: $6,711 (+40.97%)
Total Gain: $6,331 (+38.65%)

 

SPX PCS account value
SPX PCS account value
 
Our SPX net-liq increased significantly last week creating a new all-time high. But 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, it is nice to see that our account is growing while the market is struggling, going sideways or down. Although I must admit, trading in this year’s environment is very frustrating.

 

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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