My trading patterns has been working nicely today. I bought puts on the Q's at the close on Friday and we had a nice pullback today that I was able to take advantage of. The Q's are now starting to tell me they are oversold and I'm taking my profits here on this trade.
So for recap I was in 40 contracts (20% of the portfolio) of the QQQQ Aug 44 puts (QQQTR) with a cost basis of $0.60 and I sold for a profit at $0.80. This represents a gain of 33% in about 4 trading hours.
The Q's could still head lower from here over the next couple of trading days. The lower end of my trend channel on the Q's is $43.68 and they could see that level. However, I would rather take my profits early than get out late with losses.
So for recap I was in 40 contracts (20% of the portfolio) of the QQQQ Aug 44 puts (QQQTR) with a cost basis of $0.60 and I sold for a profit at $0.80. This represents a gain of 33% in about 4 trading hours.
The Q's could still head lower from here over the next couple of trading days. The lower end of my trend channel on the Q's is $43.68 and they could see that level. However, I would rather take my profits early than get out late with losses.
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