My QQQ option trade plan this week.

ES, YM, and NQ futures down 2% + as of now. On Tuesday (August 9, 2011) I plan on buying QQQ Aug12 2011 calls, 1 strike OTM. Will post when I enter trade.

 

Why are you buying calls?

 

I figure that the market is over reacting to the USA credit downgrade, and I expect a bounce back. Tuesday might be too early, but I plan on entering this trade on Wednesday at the latest.

 

I have a call on GLD. That is my only bullish position. I am certainly not prepared to predict I will take a bullish position on anything like QQQ at this time.

 

UPDATE

My trading plan is still on track, the 1 strike OTM (51.00) calls are very expensive at $1.36. If I can buy the 1 strike OTM QQQ calls for $0.45 by Wednesday 3:30pm EST then I will enter this trade.

 

why not wait until the vola goes even higher... then you can overpay even more for the calls.

let us know how that works out.

 

Why don't you let us now how that works out? It's your idea.

 

You're the one walking in front of a train....

 

UPDATE

I WILL be buying QQQ calls, 1 strike OTM on Wednesday, August 10, 2011. I would like a small pullback in the QQQ to make the QQQ Aug 2011 53.00 calls 1 strike OTM in the $0.45 range.

http://finance.yahoo.com/q?s=QQQ110812C00053000

I will post when I enter the trade.

 

Looks like you have your "small pullback."