Trade of the Week (6 May 2022)

Last week's trade will give me a gain of $460 (2.3%) 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 0.5% at 1 PM on Friday.

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 $2,300 and an expiration of 13 May 2022.  At the same time, I'll buy 2 PUT options on NQX with a strike price of $2,250 and an expiration date of 13 May. This trade has a maximum gain of about $365 as long as NQX closes above $2,300 on Friday, 13 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.