QQQ options 09/30//24 near $3.60) – 2 days later $7.16 = 98%

My Trade Plan Details:

• QQQ Oct 11 $478 puts near $3.60
• Stop: Closes QQQ above $488
  
• Target 1: $480
  
• Target 2: $475

My Reasoning:

This is the first week in a long time that I am not very optimistic about the market continuing to move upwards.

QQQ has started to trade under the 20-hour moving average, after hitting a blow-off top on Thursday last week, which was fueled by the resurgence of Chinese stocks.

That optimism quickly faded, though, and we are now seeing QQQ trade right back to what I think is a crucial support level @ $485.

My plan is to get started near the open today and buy both stock and options, hopefully near my target entry price, which I list below.
If this trade doesn’t work out, I will use a stop with a closing price above $488.

Remember, puts are a bet that a stock will go lower, so my stop loss on the trade will be if the stock gets above a certain level, not below it.

If things go my way, I think we could see QQQ break below the $485 support level soon and quickly tumble to $480 or even $475 if things really break down.