Trade of the Week (20 May 2020)

The trade from two weeks ago gave me a gain of $365 (1.7%) on a $20K account when it expires at the end of the day. If I had been invested in a NASDAQ ETF, I would have had a loss of about 2.9% at the close on 13 May.

This week's trade of the week is a Put Credit Spread again.  I'll sell 2 PUT options on NQX with a strike price of $2,070 and an expiration of 27 May 2022.  At the same time, I'll buy 2 PUT options on NQX with a strike price of $2,020 and an expiration date of 27 May. This trade has a maximum gain of about $230 as long as NQX closes above $2,070 on Friday, 27 May 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 10% this week.

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