Mr. Market has done a bunch of nothing the last 2 hours and in the last 5 minutes has broken down below the narrow trading channel. I took a small 5% loss on this trade.
For recap I was in 40 contracts of QQQQ Jan 31 Calls at $0.85 and I sold at $.80. I'm still net up for my trading today, so I'm happy going into the weekend.
I'm entering my second trade of the day with a potential move back to the upside. For this trade I'm in 40 contracts again with a position in the QQQQ Jan 31 Calls (QAVAE) with a cost basis of $0.85. My mental stop on this trade is $0.80 and I'm looking for the Q's to move back up to above $30 in the next couple of hours.
I sold my puts for a 17% gain, we have gotten back to a very short term oversold reading and I'm taking my profits at this level.
For recap I was in 40 contracts of QAVMC at a price of $0.85 and I sold for $1.00. Which was a greater than 17% gain on a trade that lasted about 2 hours.
My next trade is probably up from here.
This morning with the news of the automaker bailouts and a sharp rise in the futures we had a strong move up in the Q's this morning. That took them out of my oversold reading and we are testing the highs of from yesterday. I'm now thinking that we will fail this test and we will end the day lower than the open. With December options expiration today we will see a significant amount of volatility and I expect some wild swings today that I can take advantage of. I typically try to swing trade for overnight or a couple of day holdings. But today I'm thinking it will be mostly day trades. Since I'm doing day trades I will be using larger position sizes.
So my first trade today is to buy 40 contracts of QQQQ Jan 29 Puts (QAVMC) with a cost basis of $0.85. I'm setting a mental stop at $0.80.
The market had a nice end of day drop and my puts on the Q's gave me a nice 25% gain from yesterday. I decided to take my money off the table at the close and will look for a trade again tomorrow.
So for this trade I had 5 contracts of the QQQQ Jan 29 Puts (QAVMC) with a cost basis of $1.00 and I sold them for $1.25.
There may still be some downside left on this move (roughly to the $28.65 level) but I think my next move will be a long on the Q's as we head back towards the $31 level.
I have been out of the market for a while and have also been doing some trades in my Qswings account that have not been posted to this blog. A friend mentioned I needed to start posting my trades again, so here we go.
I just bought 5 contracts of the QQQQ Jan 29 puts (QAVMC) with a cost basis of $1.
For the time being I'm keeping it short, sweet, and to the point.
