I didn’t report June SPX trading as I was busy with other projects. So I am, once again, reporting two months – June and July 2023. As the markets started improving so our trades. We are finally able to eliminate trades that got stuck thanks to the bear market of 2022. And on top of that, we are opening new trades and generate income.

I also switched to broken wing butterfly trades. These trades offer better opportunity than plain spreads. They are initially sold for credit and they have a high chance of expiring worthless while providing some downward protection. Even if the trade goes completely against us, there is a good chance to repair it for credit. If you follow our trade signals, we had a call broken wing butterfly (BWB) that got completely against us.

We sold the BWB for 3.00 credit. And since the market rallied, the market smashed through our higher call strike making the trade a complete loser. But we closed the long spread for 7.10 credit and rolled short calls to a put spread. It cost 5.50 debit but we collected 7.10 credit that financed the roll. I like that there is a chance that if the market goes against us, we still can make money. And if the market happens to land exactly at the short strikes of the BWB, we make max profit.
 

Our SPX account is up +1,253.11% since the beginning of this program, and we have $25,540 in unrealized gains.

 

Initial SPX trade set ups

 

I dedicated a $3,600 initial amount that will be used to trade SPX PCS (now BWB) strategy per week. Today, the account is up at $48,711.95. However, due to the recent bear market, many trades are still open, and the funds are tied to those open trades. The trades need to expire or be closed for a profit to release the funds.
 

Our SPX strategy is designed as directional options trading. We are selling credit put spreads to collect premiums, and hopefully, these spreads expire worthlessly, or we repurchase them for a small debit.

We use a set of indicators, trend prediction (primarily based on moving averages, volume profiles, and trend forecasting), and market sentiment that generates bullish signals. The trading is based on a “trend-following strategy.” We open the trade if we have a bullish signal and a bullish trend. If we do not have a signal, we stay away. We also trade credit call spreads when we have bearish signals. In a choppy market, we stay away from or trade very short expirations (usually 1 or 2 days or up to 7 days), but the trading is muted as we need a trending market.

Unfortunately, today, the market is headline sensitive and can gap in either direction to fail and reverse. It is not easy to trade and not get whipsawed. That’s why we are managing our older trades and not opening new ones until we see a clear market direction.
 

Here you can see all our 2023 trades:

 

Click on the picture above to see the entire list.
 

Last month trading

 

Overall, the strategy resulted in a +1,253.11% gain last month.
 

Initial account value (since inception: 12/07/2021):	$3,600.00
Last month beginning value:	$44,801.95
Last month ending value:	$48,711.95 (+8.73%; total: +1,253.11%)
The highest capital requirements to trade this strategy:	$19,995
Current capital at risk:	-$16,540
Unrealized Gain:	$25,540 (-154.41%)
Realized Gain:	$4,986 (-30.15%)
Total Gain:	$30,526 (-184.56%)
Win Ratio:	54%
Average Winner:	$707
Average Loser:	$771

As you can see, our account currently shows a realized gain of $4,986, and we have an additional $25,540 unrealized gains.

 

SPX PCS account value
 

SPX PCS account vs SPX index net liq
 

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:

 

 

Note that if you wish to subscribe to multiple levels, you can only subscribe to one level and send us an email that you want to be added to other levels.

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 comment in the comments section. Thank you!