My Trade Details:
- QQQ Oct 21 2022 265 Put near $4.50
- Stop: Close above $278
- Target 1: $260
- Target 2: $255
QQQ – Your Bullseye Pick Of The Week - Bullseye Pick of the Week
The options were up over 100% from the open price on Monday in just 4 days.
Target 2 was hit before there was a major bounce!
The options were up over 100% from the open price on Monday. Unfortunately I was a bit too patient and didn’t get my fill at $4.50, those put options only traded as low as $5.24. My job is to plan my trade and trade my plan. The idea was correct, but I never got the pullback I wanted. The main thing is that the reasoning was correct and I stayed disciplined! On to the next one!
Here’s What Happened to The Bullseye Trade Idea!
Here was my reasoning for the trade:
My plan this week is to be patient for a while, maybe a couple of days even? I want to see the market have a “fakeout rally” before I start a new short position. I am not looking for much, but I do want to see the QQQ’s rally to over $270 for my first entry and then I want to add to this if QQQ’s go over $274.
If I am wrong, I will stop out of this trade if QQQ closes higher than $278 (which is just above the 5-day average).
If I am right, then I think QQQ’s will convincingly break below the mid-$260’s that have acted as support both in June and last week. If that happens, I would expect to see $260 fairly quickly and then possibly $255 right behind it.