Weekly Options Trading Recap: May 18 - May 22, 2026
This week in options trading featured a mix of strategies, including both call and put credit spreads. Let’s take a closer look at the trades executed during this period.
Trade Overview
- 2026-05-18: $NVDA Put Credit Spread - PENDING
- 2026-05-19: $SPY Call Credit Spread - LOSS
- 2026-05-20: $QQQ Call Credit Spread - WIN
- 2026-05-21: $NVDA Put Credit Spread - PENDING
Weekly Stats
- Total picks: 4
- Closed trades: 2
- Wins: 1
- Win rate: 50%
Understanding Credit Spreads
Credit spreads are a popular options trading strategy that involves selling one option while simultaneously buying another option of the same class (puts or calls) to limit risk. The goal is to collect a premium from the sold option, which is greater than the premium paid for the bought option, resulting in a net credit to the trader's account.
In this week's trades, we executed both put and call credit spreads:
- Put Credit Spread: This strategy was employed on $NVDA. A put credit spread involves selling a put option and buying another put option at a lower strike price. This strategy profits when the underlying stock price remains above the higher strike price.
- Call Credit Spread: On $SPY, we executed a call credit spread, which involves selling a call option and buying another call option at a higher strike price. This strategy profits when the underlying stock price remains below the lower strike price. Unfortunately, this trade resulted in a loss.
- Another Call Credit Spread: The $QQQ call credit spread was successful, contributing to our overall win for the week.
Conclusion
This week’s trading results highlight the importance of understanding the mechanics of credit spreads and the inherent risks involved. With a win rate of 50%, it’s crucial to analyze each trade carefully and manage risk effectively.
For more insights and strategies on options trading, consider signing up at dailyoptionspick.com. You can also check out our tutorial for more educational resources and our performance page for a detailed look at our trading history.
Disclaimer: This is educational content only, not financial advice. Past performance does not guarantee future results. Options trading involves significant risk of loss.