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.