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.
This week's trade of the week is a Put Credit Spread again. I sold a PUT option on NDX with a strike price of $14,350 and an expiration of 22 Oct. At the same time, I bought a PUT option on NDX with a strike price of $14,250 and an expiration date of 22 Oct. This trade has a maximum gain of about $265 as long as NDX closes above $14,350 on Friday, 22 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.
The trade discussed above is not a recommendation but is merely an account of what I may have executed in the past.
No comments:
Post a Comment