Trade of the Week (31 Dec 2021)

Last week's trade will give me a gain of $275 (1.3%) 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 0.5% at 11AM on Friday.

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 $15,500 and an expiration of 7 Jan 2022.  At the same time, I'll buy a PUT option on NDX with a strike price of $15,400 and an expiration date of 7 Jan. This trade has a maximum gain of about $215 as long as NDX closes above $15,400 on Friday, 7 Jan 2022. 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.