Last week's trade resulted in a gain of $140 (0.7%) on a $20K account when it expired at the end of the day. On the other hand, if invested in a NASDAQ ETF, there would have been a 0.66% gain at the close of trading on Friday.
This week's trade of the week is a Put Credit Spread, a type of options trading strategy that aims to take advantage of market volatility. By selling 2 $2,420 PUT options and buying 2 $2,370 PUT options, I'm expecting that NQX will close above $2,420 on Friday, 19 May, 2023. If this happens, I will keep the difference between the two options as profit, which is a maximum of $114 in this case.
This trade was made in an account with a cash balance of $20,000 while risking only half the available cash. There is a buffer for potentially fixing the trade or taking action if NQX falls 8% this week.
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