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 $15,000 and an expiration of 10 Dec. At the same time, I'll buy a PUT option on NDX with a strike price of $14,900 and an expiration date of 10 Dec. This trade has a maximum gain of about $1,446 as long as NDX closes above $15,000 on Friday, 10 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 the 1% gain that I'm aiming for.
The trade discussed above is not a recommendation but is merely an account of what I may have executed in the past.
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