Trade of the Week (20 Jan 2023)

Last week, I made a trade for a $206 (1.03%) 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 weekly gain of about 0.6% 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 $2,150 and an expiration of 27 January.  At the same time, I'll buy 2 PUT options on NQX with a strike price of $2,000 and an expiration date of 27 Jan. This trade has a maximum gain of about $206 as long as NQX closes above $2,150 on Friday, 27 January, 2023. 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 6.5% this week.

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