Oct 3, 2024

7DTE Put Credit Spread Strategy For SPX Weekly Options

SPX WTR 7DTE PCS Tuesday's Historical Backtest

SPX 7DTE Put Credit Spread Strategy | Tuesdays

The SPX weekly options trading research study finds an edge by combining Alpha Crunching's WTR or Weekly Triumph Rate with simple moving averages for trading at the money put credit spreads with 7 days to expiration on Tuesdays.

Alpha Crunching considers each day of the week of having its own characteristics and seasonality. This research takes trades on Tuesday afternoon if the following criteria is met.

Weekly Triumph Rate (WTR)

Alpha Crunching's WTR or Weekly Triumph Rate is updated each weekend before the trading week begins and shows the historical percentage of times SPX has closed higher 7 days later over the past two months.

For Tuesdays, if the WTR is above 50% then a put credit spread towards Tuesday's close is a potential trade candidate.

For bullish confirmation, SPX needs its 5sma to be above its 10sma on the daily chart about 30m before the close that Tuesday before taking this trade. If the 5sma is below the 10sma, the trade is skipped.

This strategy sells an ATM (at the money) put credit spread with 7DTE (days to expiration) with the goal of receiving at least a $2.00 credit for a 5 point wide spread. This creates a 3:2 risk reward or better for the put credit spread.

This SPX options strategy held the spread to expiration and ran a 72% win rate from January 2023 through September 2024.

View more insights

Best Indicator For SPX Options Trading

15

 min

Best Indicator For SPX Options Trading

Alpha Crunching provides Intraday Seasonality charts for SPX before the trading week begins.

Mar 11, 2024

Weekly Options Strategies That Work for SPX

3

 min

Weekly Options Strategies That Work for SPX

Alpha Crunching's Trade Ideas tab now gives you backtested trading strategies for the upcoming week based on their proprietary data so you have a trading plan ready before the trading week begins.

Oct 23, 2024

Make $$$ Trading SPX Options from Day 1

4

 min

Make $$$ Trading SPX Options from Day 1

Are you looking for a simple and time-efficient way to trade SPX options? This post outlines a beginner-friendly blueprint using Alpha Crunching’s TTR indicator to make confident trade decisions. With just a few minutes per week, you can implement this strategy and spend less time glued to your screen.

Jan 5, 2025

Finding Profitable Trading Patterns For The S&P500

5

 min

Finding Profitable Trading Patterns For The S&P500

How To Find Profitable Trading Patterns

Mar 11, 2024

Ipad screenshot

Simplified Visuals

Turning Complex Data Into Informed Decisions
We transform intricate market data into easy-to-understand visuals, helping you grasp the trends and make wise trading decisions. Whether you're a full-time investor, a day trader balancing your job, or a retiree exploring the world of trading, Alpha Crunching simplifies the process and paves the way to a more profitable trading journey.