Trade of the Week (18 March 2022)

Last week's trade will give me a gain of $325(1.6%) on a $20K account when it expires at the end of the day on 18 March. If I had been invested in a NASDAQ ETF, I would have had a gain of about 8% at the end of the day on Friday.  The market beat me this week, but I'm still ahead of my plan and ahead of the market for the year.

This week's trade of the week is a Put Credit Spread again. I still don't trust the market especially after such a large gain over the last week, so I'm going to go further out of the money than my normal 5% while still expecting to collect more than a 1% gain. I'll sell 2 PUT options on NQX with a strike price of $2,650 and an expiration of 25 Mar 2022.  At the same time, I'll buy 2 PUT options on NQX with a strike price of $2,600 and an expiration date of 25 Mar. This trade has a maximum gain of about $360 as long as NQX closes above $2,650 on Friday, 25 Mar 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.