SP-CD, Trades S&P Options, Credit & Debit Spreads

1) Performance Summary October 2010 – February 2020

Recommended Starting Balance $25,000.00
Cumulative Net Profit
$211,957.74
Maximum Drawdown (-35.43%)
($8,858.22)
Best Year 2017 +155.01% $38,751.61
Worst Year 2016 +48.84% $12,209.63
2013-2020 Average +114.31% $28,578.57
2020 +73.87%
$18,467.55

Performance is based on trading one $25,000 unit, never adding units and withdrawing all net profits annually. The SP-CD program uses leverage, has a realistic risk factor of $15,000 per unit, if you are not in a position to comfortably assume this risk you should not participate in this program.

Risk Disclosure   Defining Account Risk

2) About this program

Spreadsheet for online reviews

This programs writes credit spreads and/or volatility spreads in options with expirations of 1 day to 3 weeks to collect time premium and buys debit spreads with 1 to 6 months to expiration to hedge risk.

Example, the market is trading at 3,325.50 we sell a 3,330 at the money put collecting 24.50 in time premium and buy two 3,230 out of the money puts (100.00 points lower) paying out a total of 8.40, net time premium collected 16.10 points, value $805.00 per spread, expiration 4 days.

On this credit spread we’re collecting $181.75 per day net of all bid/ask spreads and fees.

We also own two 3,230 out of the money puts for every 3,320 at the money put we sold, in the event of a hard sell off  we have the opportunity to make money.

If the up trend in the S&P 500 continues or the market stays the same the one week options will expire worthless and we keep the net credit after all bid/ask spreads and fees of $727.00 then write another 1 X 2 credit spread for the following week using the same procedure.

This credit spreads pays $181.75 per day

To further hedge the position we buy a debit spread with an expiration of 1 to 6 months, for example if the June contact is trading at 3,325.50, we buy one put at the money at 3,330 expiring in 109 days and pay 97.50 points then sell an out of the money put at 3,120 (200.00 points lower) collecting 48.00 in premium.

Our cost on the hedge is $2,453.00 net of all bid/ask spreads and fees for the 109 day period. We’ve also written the put 200.00 points lower defining our risk and creating an opportunity to make money if a hard sell off occurs.

On the hedge in the longer dated delivery months we’re paying $22.50 per day.

Our risk is a maximum of the premium collected on the 3,330 – 3,320 X 2 credit spread expiring in 4 days (727.00) less what we paid out for the 3,390 –  3,130 debit spread expiring in 109 days (-$2,453.00) or -$1,726.00 net of all bid/ask spreads & fees.

The objective is to keep rewriting the options that weekly expirations collecting an average of $727.00 per week for the next 15 weeks (+$10,905.00) while maintaining the debit spread we purchased for (-$2,375) or, if the market makes a hard move lower to capture a piece of this move lower. During the 109 day period we will likely have to adjust the debit spread hedge but we’re always collecting more time premium daily than paying out.

4) Online reviews

Spreadsheet

If you’d like to learn exactly how this program works contact me, using this spreadsheet  I’ll walk you through how we generate and maintain trades, when we’re done you’ll be able to verify past performance, duplicate trades forward as they occur.

CME Option Quotes
BC Option Quotes
Daily Chart
Weekly Chart
Monthly Chart
Market Opinion

3) About Automated Trading Accounts (ATAs)

Automated Trading Accounts (ATA)
The Fee Structure For This Program
Defining Overall Risk For Your Account

Exchanges Traded
Brokerage Firms
How Balances Are Guaranteed Plus or Minus Trading
How To Open An Account

4) Educational Videos & Links

Educational Videos & Resources

4.01 Futures General Information
4.02 Options General Information
4.03 Currency Futures
4.04 Stock Index Futures
4.05 Interest Rate Futures
4.06 Metals Futures
4.07 Energy Futures
4.08 CME Learning Center
4.09 Futures Fundamentals
4.10 Education Material
4.11 Resource Center
4.12 Research Reports
4.13 Podcasts
4.14 Monthly FX Review
4.15 Media Room

Contact me with any questions

Regards,
Peter Knight Advisor

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Privacy Notice

Disclosure

 

 

If you have questions contact me.

Regards,
Peter Knight

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Privacy Notice

Risk Disclosure

 

 

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Asset Investment Management

Family Office, Advisors