Contrarian Call Credit Spread Hedge Trade

SPX WTR 7DTE CCS Wednesday's Historical Backtest

Call Credit Spread Strategy for SPX | Wednesdays

This SPX 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 call credit spreads with 7 days to expiration on Wednesdays.

‍

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

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. We also calculate the average number of SPX points the market has closed higher for each day of the week.

‍

This SPX call credit spread trade is considered a contrarian trade as we are looking for certain bullish conditions to be in place before taking the trade. The idea here is that when certain bullish conditions are in place, we will also be in some other bullish put credit spreads at the same time which means this trade can help hedge any current open positions.

‍

The bullish conditions we're looking for start with the WTR Historical Line chart. For Wednesdays, if the WTR Average Points are increasing from the previous week, a 7DTE call credit spread is a potential trade candidate for the week.

‍

The other bullish conditions that needs to be met at the time of the trade entry is that SPX needs to be above the 5sma on the daily chart about 15m before the close that Wednesday before taking this trade. If SPX is trading below its 5sma, the trade would be skipped.

‍

This strategy sells a an out of the money call credit spread with 7DTE (days to expiration) where the short strike is at Delta 35. The typical credit for this 5 wide spread is $1.60-$2.00.

‍

This SPX options strategy held the spread to expiration and ran a 78% win rate from 2023-2026.

‍

View more insights

min

A Simple SPX 0DTE Credit Spread Strategy Using Time, Trend, and Strike Selection

Learn how this simple SPX 0DTE credit spread strategy uses time of day, trend, and strike selection to identify high-probability trades with minimal screen time. In this breakdown, we walk through the Trend Spread Engine framework, real-time alerts, strike selection near the expected move, and recent backtest performance results.

min

7DTE Strategy For SPX Options

Learn how this simple 7DTE SPX put credit spread strategy combines Alpha Crunching's Weekly Triumph Rate (WTR) with trend confirmation to identify high-probability bullish trades. Backtested from 2023 through mid-2026, this mechanical strategy achieved an 80% win rate while requiring just a quick check near Monday's close each week.

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.

min

SPX Weekly Options Trading Research | 1DTE Put Credit Spread Strategy

This SPX weekly options trading research looks at selling 1DTE Put Credit Spreads on Mondays based on Alpha Crunching's TTR

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.