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%.

There is some flexibility with this trade depending on your account balance.  The same percentage gain can be achieved on an account with a $2000 balance by using strike prices of $14150 to SELL the PUT and $14140 to BUY the PUT using the same 15 Oct 2021 expiration.

The trade discussed above is not a recommendation but is merely an account of what I may have executed in the past.