February 2009 Archives

I'm feeling some decent pain on my current trade. The market had a rough start this morning and my position was getting down to a 25% loss. At 10AM the market seems to have found a short term bottom and the Q's have been moving up for the last hour to almost green on the day.

As I stand now I'm now only down 10% and I'm trying to decide if I want to hold for the upcoming 3 day weekend. I still think we will see somewhere close to $31 over the next couple of days and my charts are telling me we are in an oversold condition. So charts are telling me we go higher from here.

As a side note, I started to use another account with this same trading methodology. In that account I have 200 contracts of the same trade. So I'm feeling more pain in that one compared to this account.

I'm glad I picked the March options, that gives me plenty of room to let the trade play out.

I just bought some calls on the Q's in anticipation of a bounce off the lower trend channel I'm following. I think this next move takes me up above $31 on the Q's over the next couple of days.

For this trade I purchased 40 contracts of the Mar 31 Calls on the QQQQ (QAVCE) with a cost basis of $1.25.

The Obama administration is promising an aggressive effort to combat the worst financial crisis in seven decades, unveiling a program that could mobilize well over $1 trillion in public and private support to get the frozen credit markets functioning again.

Well as they are speaking the markets are in free fall. The Q's have gone down over 2% from the open and I decided to take my profits on my put trade here. They may continue lower, but I'm taking what I can.

For recap I was in 40 put contracts of the Mar 30 Puts on the QQQQ (QAVOD) with a cost basis of $1.10. I sold my contracts at $1.35 which gave me a greater than 22% gain on this trade.

I bought some puts on the open looking for a strong move down today. For this trade I purchased 40 contracts of the QQQQ Mar 30 Puts (QAVOD) at a cost of $1.10.

As I said earlier, I'm thinking we will see somewhere south of $30 over the next couple of days.

I was studying the QQQQ chart this morning and it looks like we are at the top of my trend channel and we also have a bearish cross on the Stochastic as well. I will be looking to load up on puts this morning. I think we will see the Q's somewhere below the $30 level sometime this week.