Trade of the Week (9 Dec 2022)

Last week, I made a trade for a $214 (1.07%) 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 3.6% 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 $2,130 and an expiration of 16 December.  At the same time, I'll buy 2 PUT options on NQX with a strike price of $2,080 and an expiration date of 16 Dec. This trade has a maximum gain of about $234 as long as NQX closes above $2,130 on Friday, 16 December, 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 8.5% this week.

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