Looking back at history, NDX has had a gain of 7.6% in only 7 months out of the last 60 months and 4 of these months came during the recovery from the COVID Plunge. Average monthly gains over the last 5 years come out to about 1.9%, so I believe that the market is still a little overheated. I think that October should have closed around 15300, and I'm expecting November to be flat and to close around 15900. These numbers are purely based on historical numbers, and do not account for any social, economic or political factors.
Sunday, October 31, 2021
Oct 2021 Wrap-up
This was a successful month for both the NASDAQ 100 and for our Put Credit Spread strategy. The NASDAQ 100 gained about 7.6% over the month of October. Our Put Credit Strategy brought in $1,000 on an account valued at $20,000, coming out to a 5% gain for the month with just 3 trades that reached their expiration date over the 4 weeks. We would have had the same 5% gain as long as NDX did not have a 5% decline in any of the 3 weeks of trading. In theory, I could have had another 1.5% gain in the first week of the month, but that still would not have matched the NASDAQ 100 gains for October.
Friday, October 29, 2021
Trade of the Week (29 Oct 2021)
Last week's trade will give me a gain of $295 on a $20K account when it expires at the end of the day today. If I had been invested in a NASDAQ ETF, I would have had a gain of about 2.5% at 11AM on Friday. We'll see what happens in the market today, but I'm happy with my 1.4% weekly gain either way.
The trade discussed above is not a recommendation but is merely an account of what I may have executed in the past.
Friday, October 22, 2021
Trade of the Week (22 Oct 2021)
Last week's trade will give me a gain of $265 on a $20K account when it expires at the end of the day today. If I had been invested in a NASDAQ ETF, I would have had a gain of about 1.7% at 11AM on Friday. We'll see what happens in the market today, but I'm happy with my 1.3% weekly gain either way.
The trade discussed above is not a recommendation but is merely an account of what I may have executed in the past.
Friday, October 15, 2021
Trade of the Week (15 Oct 2021)
Last week's trade got me a 2.2% gain of $440 on a $20K account. If I had been invested in a NASDAQ ETF, I would have had a gain of 1.5% when the put spread expired.
The trade discussed above is not a recommendation but is merely an account of what I may have executed in the past.
Saturday, October 9, 2021
Trade of the Week (8 Oct 2021)
The trade of the week is a Put Credit Spread. This will be my standard trade and would have had a 98% success rate over the last 5 years. I sold a PUT option on NDX with a strike price of 14150 and an expiration of 15 Oct. At the same time, I bought a PUT option on NDX with a strike price of 14050 and an expiration date of 15 Oct. This trade has a maximum gain of $440 as long as NDX closes above $14150 on Thursday, 14 Oct 2021. I made this trade in my account that has a cash balance of $20,000. I am only using half of my available cash so that I can fix the trade in the unlikely event that NDX happens to fall by 5% this week.
This trade won't have the same value on Monday, but you should be able to get it for well over $2.00. That will still have you on track for a weekly gain of more than 1%.
The trade discussed above is not a recommendation but is merely an account of what I may have executed in the past.