Nov 2021 Wrap-up

This was a successful month for both the NASDAQ 100 and for our Put Credit Spread strategy.  The NASDAQ 100 gained about 1.6% over the month of November.  Our Put Credit Strategy brought in $865 on an account valued at $20,000, coming out to a 4.3% gain for the 4 trades that reached their expiration date this month.  We would have had the same 4.3% gain as long as NDX did not have a 5% decline in any of the weeks of trading. 

This month's gain on the NDX is a little smaller than what I would expect in a typical month, but this makes sense following the larger than normal gain from last month.  I was expecting November to close at 15900, and it closed at 16,135. I'm expecting good numbers again for December with a close around 16500. These numbers are purely based on historical averages, and do not account for any social, economic or political factors.

Trade of the Week (26 Nov 2021)

Last week's trade will give me a gain of $195 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 2.26% at 11AM on Friday. We'll see what happens in the market today.

This week's trade of the week is a Put Credit Spread again. I'll sell a PUT option on NDX with a strike price of $15,350 and an expiration of 3 Dec. At the same time, I'll buy a PUT option on NDX with a strike price of $15,250 and an expiration date of 3 Dec. This trade has a maximum gain of about $940 as long as NDX closes above $15,350 on Friday, 3 Dec 2021. 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 NDX happens to fall by 5% this week. This week's return is a lot more than a 1% gain, so it makes up for the slightly smaller gain last week.

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

Trade of the Week (19 Nov 2021)

Last week's trade will give me a gain of $205 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 gain of about 2.2% at 11AM on Friday. We'll see what happens in the market today.

This week's trade of the week is a Put Credit Spread again. I'll sell a PUT option on NDX with a strike price of $15,750 and an expiration of 26 Nov. At the same time, I'll buy a PUT option on NDX with a strike price of $15,650 and an expiration date of 26 Nov. This trade has a maximum gain of about $195 as long as NDX closes above $15,750 on Friday, 26 Nov 2021. 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 NDX happens to fall by 5% this week. This week's return is a little less than a 1% gain, but it sticks to the plan of selling put credit spreads that are 5% out of the money.

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

Trade of the Week (12 Nov 2021)

Last week's trade will give me a gain of $235 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 1.1% at 11AM on Friday.  We'll see what happens in the market today, but I'm happy with my 1.1% weekly gain.

This week's trade of the week is a Put Credit Spread again.  I'll sell a PUT option on NDX with a strike price of $15,400 and an expiration of 19 Nov. At the same time, I'll buy a PUT option on NDX with a strike price of $15,300 and an expiration date of 19 Nov. This trade has a maximum gain of about $205 as long as NDX closes above $15,400 on Thursday, 18 Nov 2021. 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 NDX happens to fall by 5% this week. This week's trade actually has a better chance of falling by 5% than prior trades because the market has moved up so far and so quickly over the past month, but this is a risk that I'm willing to accept.

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

Trade of the Week (5 Nov 2021)

Last week's trade will give me a gain of $230 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 gain of about 3.7% at 11AM on Friday.  We'll see what happens in the market today, but I'm happy with my 1.1% weekly gain.

This week's trade of the week is a Put Credit Spread again.  I'll sell a PUT option on NDX with a strike price of $15,600 and an expiration of 12 Nov. At the same time, I'll buy a PUT option on NDX with a strike price of $15,500 and an expiration date of 12 Nov. This trade has a maximum gain of about $235 as long as NDX closes above $15,600 on Friday, 12 Nov 2021. 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 NDX happens to fall by 5% this week. This week's trade actually has a better chance of falling by 5% than prior trades because the market has moved up so far and so quickly over the past month, but this is a risk that I'm willing to accept.

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

Oct 2021 Wrap-up

This was a successful month for both the NASDAQ 100 and for our Put Credit Spread strategy.  The NASDAQ 100 gained about 7.6% over the month of October.  Our Put Credit Strategy brought in $1,000 on an account valued at $20,000, coming out to a 5% gain for the month with just 3 trades that reached their expiration date over the 4 weeks.  We would have had the same 5% gain as long as NDX did not have a 5% decline in any of the 3 weeks of trading.  In theory, I could have had another 1.5% gain in the first week of the month, but that still would not have matched the NASDAQ 100 gains for October.

Looking back at history, NDX has had a gain of 7.6% in only 7 months out of the last 60 months and 4 of these months came during the recovery from the COVID Plunge.  Average monthly gains over the last 5 years come out to about 1.9%, so I believe that the market is still a little overheated.  I think that October should have closed around 15300, and I'm expecting November to be flat and to close around 15900. These numbers are purely based on historical numbers, and do not account for any social, economic or political factors. 

Trade of the Week (29 Oct 2021)

Last week's trade will give me a gain of $295 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 gain of about 2.5% at 11AM on Friday.  We'll see what happens in the market today, but I'm happy with my 1.4% weekly gain either way.

This week's trade of the week is a Put Credit Spread again.  I'll sell a PUT option on NDX with a strike price of $14,950 and an expiration of 5 Nov. At the same time, I'll buy a PUT option on NDX with a strike price of $14,850 and an expiration date of 5 Nov. This trade has a maximum gain of about $230 as long as NDX closes above $14,950 on Friday, 5 Nov 2021. 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 NDX happens to fall by 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.

Trade of the Week (22 Oct 2021)

Last week's trade will give me a gain of $265 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 gain of about 1.7% at 11AM on Friday.  We'll see what happens in the market today, but I'm happy with my 1.3% weekly gain either way.

This week's trade of the week is a Put Credit Spread again.  I'll sell a PUT option on NDX with a strike price of $14,650 and an expiration of 29 Oct. At the same time, I'll buy a PUT option on NDX with a strike price of $14,550 and an expiration date of 29 Oct. This trade has a maximum gain of about $295 as long as NDX closes above $14,650 on Friday, 29 Oct 2021. 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 NDX happens to fall by 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.

Trade of the Week (15 Oct 2021)

Last week's trade got me a 2.2% gain of $440 on a $20K account.  If I had been invested in a NASDAQ ETF, I would have had a gain of 1.5% when the put spread expired.

This week's trade of the week is a Put Credit Spread again.  I sold a PUT option on NDX with a strike price of $14,350 and an expiration of 22 Oct. At the same time, I bought a PUT option on NDX with a strike price of $14,250 and an expiration date of 22 Oct. This trade has a maximum gain of about $265 as long as NDX closes above $14,350 on Friday, 22 Oct 2021. 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 NDX happens to fall by 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.

Trade of the Week (8 Oct 2021)

 

The trade of the week is a Put Credit Spread.  This will be my standard trade and would have had a 98% success rate over the last 5 years.  I sold a PUT option on NDX with a strike price of 14150 and an expiration of 15 Oct.  At the same time, I bought a PUT option on NDX with a strike price of 14050 and an expiration date of 15 Oct.  This trade has a maximum gain of $440 as long as NDX closes above $14150 on Thursday, 14 Oct 2021.  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 NDX happens to fall by 5% this week.

This trade won't have the same value on Monday, but you should be able to get it for well over $2.00.  That will still have you on track for a weekly gain of more than 1%.

There is some flexibility with this trade depending on your account balance.  The same percentage gain can be achieved on an account with a $2000 balance by using strike prices of $14150 to SELL the PUT and $14140 to BUY the PUT using the same 15 Oct 2021 expiration.

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