Weekly Report 2022-03-27

trading journal


Following the previous week's remarkable bounce, the S&P500 (SPY) appears reenergized and has delivered another week of solid gains.

After some uncertainty on Monday and a solid session on Tuesday, some selling pressure intensified on Wednesday, raising additional concerns about the market's long-term uptrend sustainability. The mid-week setback, however, was quickly forgotten as a new wave of buying pressure brought prices just below the key $454 resistance level during the next two days.

As we enter a new trading week, it will be critical to determine whether this price action, which has now been quite extended to the upside, will encounter resistance and be rejected for a new pullback, or if bulls are really back in control of the game.

Weekly market performance (Week 12/2022)

 S&P500 (SPY) +1.84%
 Nasdaq100 (QQQ) +2.24%
 Dow Jones Industrial (DIA) +0.39%
 Small Caps (IWM) -0.55%

With this renewed market strength, the Market Volatility Index (VIX) keeps dropping and is now sitting just above the 20 level.



Vertical credit spreads are one of the simplest and most robust option selling techniques, making them suitable even for traders with limited expertise and small funds available. Vertical credit spreads are covered in two of the six official strategy sections of the Options Trading Club (OTC).

The first section is handled by one of our amazing moderators (aka Trader64), who has a total track record in 2022 of 32 successful trades with zero losses for an astonishing 1,381% annualized return on investment. That's quite impressive given how difficult the stock market has been since the beginning of the year.

The second section is managed by me, and it consists of a small portfolio with a beginning capital of $1,000. After successfully doubling the account size in a few of months, the whole capital of the small portfolio that I employ for this strategy is now entirely devoted to protecting the short leg of the XBI Bull Put Spread $120/115 that remains open after I sold the long leg at the end of November 2021.

Because it will most likely take several months to repair the existing position and return this portfolio to regular operation, I decided to create a new portfolio inside the vertical credit spreads section that I run.

On Monday, March 28th, 2022, I will begin the 6K SPY Challenge, in which I will allocate $6,000 of my own money to only play vertical credit spreads (both put and call spreads) on the SPY ETF. Each position will have a $500 maximum risk, and I intend to open 2-3 new trades per week, with a maximum of 12 open positions at any given time.

If you want to follow along with the 6K SPY Challenge, you can join the Options Trading Club for an entire month for only $3 by using the coupon code trial3 at checkout (limited spots are available).

As usual, if you have any questions, just send me an email at [email protected]

Take care and trade wisely!

- Gianmarco 

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