Trade of the Week (14 Oct 2022)

Last week, I made a trade for a $212 (1.06%) gain 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 3.1% at the end of the day 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 $1,950 and an expiration of 21 October.  At the same time, I'll buy 2 PUT options on NQX with a strike price of $1,900 and an expiration date of 21 Oct. This trade has a maximum gain of about $230 as long as NQX closes above $1,950 on Friday, 21 October, 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 6.4% this week.

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