QQQ weekly OTM option trades - 4th and final week This is the 4th and final thread of my four week series on trading the QQQ weekly options posted LIVE on EliteTrader. For Trade #5 my plan is to once again enter a trade just before the market closes. I'm leaning toward a long call or put - 1 strike OTM, but will consider a strangle depending on the market. One strategy I would like to try is to "double-up" on a loser the next day and buy an additional option to lower the average cost and close the entire position the following day at a loss or profit. Trade #5 will be posted on Tuesday, Wednesday or Thursday, and I will update once the trade has been opened. On August 27 I will summarize the past four weeks. Completed August 2011 QQQ Weekly Option Trades: Trade #1: Aug01-05 Buy QQQ 56P/57C strangle +15% QQQ options VERY expensive Trade #2: Aug08-12 Buy QQQ 52C +56% My QQQ option trade plan this week. Trade #3: Aug15-19 Buy QQQ 53P +27% QQQ OTM Call option trade - August 15-19 Trade #4: Aug15-19 Buy QQQ 53P/54C strangle +173% QQQ OTM Call option trade - August 15-19 --------------------------------- I put the ELITE in EliteTrader
I just opened the following trade. Trade #5: Aug22-26 Buy QQQ 53/54 Bull Call Spread - Live trade in progress. QQQ @ $52.70 Buy QQQ Aug 2011 53.00 Call @ $0.4702 http://finance.yahoo.com/q?s=QQQ110826C00053000 Sell QQQ Aug 2011 54.00 Call @ $0.1098 http://finance.yahoo.com/q?s=QQQ110826C00054000 Total debt $36.04 commissions included. Last day of trading August 26, 2011. Will update when I close position. 1 Week QQQ Chart - I expect the upward trend to continue for a day or two. --------------------------------- I put the ELITE in EliteTrader
Interesting development. Steve Jobs resigns as CEO of Apple and AAPL is 12% of the QQQ, this could have a negative affect on my QQQ 53/54 Bull Call Spread. http://finance.yahoo.com/news/Steve-Jobs-Resigns-as-CEO-of-bw-19285464.html?x=0&.v=1
UPDATE - POSITION CLOSED Sell QQQ Aug 2011 53.00 Call @ $0.23 http://finance.yahoo.com/q?s=QQQ110826C00053000 Buy QQQ Aug 2011 54.00 Call @ $0.06 http://finance.yahoo.com/q?s=QQQ110826C00054000 P/L $21.09 / - 59% commissions included. --------------------------------- I put the ELITE in EliteTrader