QQQ Intraday $100 to $2500 with options RECAP
Updated
QQQ is shown here on the 15 minute time frame. Overlaid are a HMA 7 and SMA 5 to provide
moving average crosses. QQQ made a "M" pattern. Options charts are shown in the updates.
First Trade SQQQ is opened at 9:48 for $ 6.00 per call contract times 16 contracts. It is closed
at 10:05 less than 20 minutes later at $20.00 per contract. $96 dollars the only risk in the trade
is waiting to settle as is the $ 224.00 in profit. ( This is a same day expiration intraday trade)
Second Trade QQQ as QQQ has topped and is pivoting down. The second trade of the day
is not a same day expiration as it is now Friday afternoon, a put option in the direction of the
trend is taken for Tuesday the 20th, there being no puts for the Monday holiday.
The floating profit is $ 224 and the strike is set for below the money in the current direction of
the trend. A strike of $ 429 selected. The options chart is shown in the updates.
The premium was 0.37 so $37 per contract so six contracts were taken for a total of
which is $222 or slightly less than the profit on the first trade. The trade is taken at 14:47
market time and closed about 90 minutes later at 15:52 before the close.
The contracts sold at close for $ 1.41 each yielding $ 141 per contract or $ 2256 overall.
Between the two trades $100 was risked and $ 233 + 2256 or 2489 overall.
The Reward to Risk ratio was about 25. The profit and the initial $100 into the trades
awaits settlement after the holiday.
This trade was made to teach a mentee about the power of options leveraged with narrow
expirations to optimize profits and not spend a lot of time in the trade to minimize risk
in the market from any number of potentials. Alerts and notifications centered on moving
averages and rise or fall of intraday low time frame relative strength are used to lessen
screen time. Twenty baggers may not be everyday but then again with practice and patience
they can come along often enough.
moving average crosses. QQQ made a "M" pattern. Options charts are shown in the updates.
First Trade SQQQ is opened at 9:48 for $ 6.00 per call contract times 16 contracts. It is closed
at 10:05 less than 20 minutes later at $20.00 per contract. $96 dollars the only risk in the trade
is waiting to settle as is the $ 224.00 in profit. ( This is a same day expiration intraday trade)
Second Trade QQQ as QQQ has topped and is pivoting down. The second trade of the day
is not a same day expiration as it is now Friday afternoon, a put option in the direction of the
trend is taken for Tuesday the 20th, there being no puts for the Monday holiday.
The floating profit is $ 224 and the strike is set for below the money in the current direction of
the trend. A strike of $ 429 selected. The options chart is shown in the updates.
The premium was 0.37 so $37 per contract so six contracts were taken for a total of
which is $222 or slightly less than the profit on the first trade. The trade is taken at 14:47
market time and closed about 90 minutes later at 15:52 before the close.
The contracts sold at close for $ 1.41 each yielding $ 141 per contract or $ 2256 overall.
Between the two trades $100 was risked and $ 233 + 2256 or 2489 overall.
The Reward to Risk ratio was about 25. The profit and the initial $100 into the trades
awaits settlement after the holiday.
This trade was made to teach a mentee about the power of options leveraged with narrow
expirations to optimize profits and not spend a lot of time in the trade to minimize risk
in the market from any number of potentials. Alerts and notifications centered on moving
averages and rise or fall of intraday low time frame relative strength are used to lessen
screen time. Twenty baggers may not be everyday but then again with practice and patience
they can come along often enough.
Note
SQQQ options trade drive.google.com/file/d/1jJDdYwu4Yf-LTzJOeOP8snFlKA1OEBKh/view?usp=sharingNote
QQQ PUT option chart drive.google.com/file/d/1tJ5R8sbIOecucDZXiXcbKiY9-UlUwloi/view?usp=sharingTrade closed: target reached
We did miss and excellent trade between 1400 and 1500 in QQQ put option forthe same strike it was lunch time and a focus is to cut down on chart time to
avoid burnout. If that trade had been taken, there would have been three trades
for over $4000 with only $100 risked. Several other trades were underway and this
lunch time ( west coast) got away. See this link
Note
NY End of Lunch Hour trade missed- maybe next timeTrade active
Put options today and tomorrow expiring are doing well in good follow through from yesterday. Helps the long positions offsetting paper losses on several stocks.
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