Trade of the Week (6 April 2023)

I didn't have a trade last week, but I would have been successful sticking with selling a put 5-10% out of the money for a gain of 0.5-1%.  If I had been invested in a NASDAQ ETF, I would have had a weekly loss of about 3.1% 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 $2,400 and an expiration of 14 April 2023.  At the same time, I'll buy 2 PUT options on NQX with a strike price of $2,350 and an expiration date of 14 April. This trade has a maximum gain of about $140 as long as NQX closes above $2,400 on Friday, 14 April, 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 8.2% this week.

Note: This trade is not a recommendation but is merely an account of what I may have executed in the past.