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.
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.
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