The only rule that I can determine about reading Spanish monograms is that there are no rules, although the following remarks seem to hold true: 

1. Any part of any character can be used as a letter; 

2. Any letter can be used as many times as is required; 

3. Letters may (or may not) occur —left to right— in the proper sequence to spell the “hidden” word(s), except that the first initial is often the left-hand character in the monogram; and 

4. The artistic value of the monogram may carry more weight than the grammatical. Thus armed, let us “read” the monogram of King Philip III. In Latin, we should be able to see P-H-I-L-I-P-P-U and S in his design. Notice that only six different letters are required to spell PHILIPPUS: P (three times); H; I (twice); L; U (or V); and S. These can all be read in the darkened areas of his monogram as shown: 
 

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