Trade of the Week (26 Nov 2021)

Last week's trade will give me a gain of $195 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 loss of about 2.26% 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 $15,350 and an expiration of 3 Dec. At the same time, I'll buy a PUT option on NDX with a strike price of $15,250 and an expiration date of 3 Dec. This trade has a maximum gain of about $940 as long as NDX closes above $15,350 on Friday, 3 Dec 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 lot more than a 1% gain, so it makes up for the slightly smaller gain last week.

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