Trade of the Week (11 Feb 2022)

My day job got away from me last week, so I wasn't able to make a trade.  However, sticking w/ selling a Put Credit Spread 5% out of the money would have worked again this week.  The trade from 2 weeks ago gave me a gain of $1,500(7.5%) on a $20K account when it expired at the day Friday last week.

This week's trade of the week is a Put Credit Spread again. I'm switching my standard fund from NDX to NQX to get a little more flexibility.  I'll sell 2 PUT options on NQX with a strike price of $2,760 and an expiration of 18 Feb 2022.  At the same time, I'll buy 2 PUT options on NQX with a strike price of $2,710 and an expiration date of 18 Feb. This trade has a maximum gain of about $925 as long as NQX closes above $2,760 on Friday, 18 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 NQX 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.