Trade of the Week (19 Nov 2021)

Last week's trade will give me a gain of $205 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 2.2% at 11AM on Friday. We'll see what happens in the market today.

This week's trade of the week is a Put Credit Spread again. I'll sell a PUT option on NDX with a strike price of $15,750 and an expiration of 26 Nov. At the same time, I'll buy a PUT option on NDX with a strike price of $15,650 and an expiration date of 26 Nov. This trade has a maximum gain of about $195 as long as NDX closes above $15,750 on Friday, 26 Nov 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 week's return is a little less than a 1% gain, but it sticks to the plan of selling put credit spreads that are 5% out of the money.

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