Questions On QQQ Trades

QPI Trading Ideas

Couple ideas on this fast moving morning.

When we recommend a trade and the next morning it gaps open in our favor, take profits when over 25% and definitely when more than 50%. We had this situation this morning.

The QQQ $392 Call for Dec 1 traded up in early trading to $4.21 which was a gain of $1.71 on $2.50 almost 68.4% more than 50%. When we closed the trade it was trading at $3.61 but three minutes early was at $3.82, which is why I showed $1.32, then a minute after was at $3.72 when I sent the alert out.

These are fast markets. As I write it is back at $3.00. Now for a comment on the spread trade. We recommended to buy the $392 Call for $2.50 and sell the $395 Call for $1.50 for a net cost of a $1.00. Right now at 10:42 a.m. EST the $392 Call is at $2.93 and the $395 Call is at $1.67 so the spread is at $1.26 for a gain of $0.26 or 26%.

For now we will stay with the spread/straddle trade and stay long QQQ. Hope this helps.