Trade of the Week (28 Jan 2022)

Last week's trade will give me a gain of $1,170(5.1%) 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 1.2% at 1PM 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 $13,550 and an expiration of 4 Feb 2022.  At the same time, I'll buy a PUT option on NDX with a strike price of $13,450 and an expiration date of 4 Feb. This trade has a maximum gain of about $1,500 as long as NDX closes above $13,550 on Friday, 4 Feb 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.

Trade of the Week (21 Jan 2022)

OUCH!!  What an ugly week.  I was expecting a draw down, but not this much and definitely not this fast.

Last week's trade gave me a gain of $750(3.7%) on a $20K account when it expired this morning. If I had been invested in a NASDAQ ETF, I would have had a loss of about 5.4% 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 $14,000 and an expiration of 28 Jan 2022.  At the same time, I'll buy a PUT option on NDX with a strike price of $13,900 and an expiration date of 28 Jan. This trade has a maximum gain of about $1,170 as long as NDX closes above $14,000 on Friday, 28 Jan 2022.  I'm going to make sure to close this trade before the market closes on Thursday because this option expires when the market opens on Friday, 28 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.

Trade of the Week (14 Jan 2022)

Last week's trade will give me a gain of $525(2.6%) 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 $14,700 and an expiration of 21 Jan 2022.  At the same time, I'll buy a PUT option on NDX with a strike price of $14,600 and an expiration date of 21 Jan. This trade has a maximum gain of about $750 as long as NDX closes above $14,700 on Thursday, 20 Jan 2022.  I'm going to make sure to close this trade before the market closes on Thursday because this option expires when the market opens on Friday, 21 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.

Trade of the Week (07 Jan 2022)

Last week's trade can still give me a gain of $275 (1.3%) on a $20K account when it expires at the end of the day today.  Right now, I can't close the trade for a profit, so I'll have to keep it open until a little later in the day. If I had been invested in a NASDAQ ETF, I would have had a loss of about 4.7% at 11AM on Friday.  

Right now, I can make a few trading plans, but I don't actually want to enter a trade until I can close last week's trade or until NDX moves higher.  The plans that I'm looking at are either selling a Put Credit Spread where I sell 1 NDX Put at 15,000 and buy 1 NDX Put at 14,900; or a Put Credit Spread where I sell 2 NDX Puts at 15,000 and buy 2 NDX Puts at 14,925.  I would make 1 of these trades for a profit before the end of the day.   Depending on how close the market is to the price of the sold Put last week, I may close out last weeks trade at the same time or just plan to let it expire worthless.

UPDATE 1 (1:38PM):

I'm looking to close last week's trade while opening this week's trade of buying 1 NDX Put at 15,000 and buying 1 NDX Put at 14,900.  This trade combination should bring in about $525 this week.  Closing last week's trade will cost about $400, and opening this new trade will give me a credit of about $925; this combination comes out to a net gain of $525.

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

Dec 2021 Monthly Wrap-up

This was a successful month for both the NASDAQ 100 and for our Put Credit Spread strategy.  The NASDAQ 100 gained about 1.1% over the month of December.  Our Put Credit Strategy brought in $4,140 on an account valued at $20,000, coming out to a 20% gain for the 5 trades that reached their expiration date this month.  We would have had this gain as long as NDX did not have a 5% decline in any of the weeks of trading. 

This month the NDX had a gain that was slightly smaller than the 5-year average.  I was expecting December to close at 16,500, and it closed at 16,302. I'm expecting January to have a small gain again with a close around 16,500. On the longer time frame, I'm looking for a 7% loss over the next few months but I have no clue when or if it will show up.  These numbers are purely based on historical averages, and do not account for any social, economic or political factors.