Trade of the Week (3 Feb 2023)

Last week I didn't make a trade, so this week was really a draw rather than a win.  If I had been invested in a NASDAQ ETF, I would have had a gain of about 3.3% at the market close 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 10 Feb.  At the same time, I'll buy 2 PUT options on NQX with a strike price of $2,250 and an expiration date of 10 Feb. This trade has a maximum gain of about $90 as long as NQX closes above $2,300 on Friday, 10 February, 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 8% this week. This trade is for a smaller gain than normal, but the market has moved a lot higher in a really short period of time. So, I'm playing it a little safer than normal.

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