Hello Investors,
Our QQQ short calls are setup perfectly as we move into expiration today. We collected a credit of +0.75 or $75.00 of total income. We will monitor QQQ into the close but as long as we finish below 281/share (highly likely) those calls will expire for a full profit and no adjustments are required.
We want to re-enter into a new bearish position in QQQ. This is similiar to the trade that will expire above. However, it will be a bit more conservative than our current trade because we are selling a little further out-of-the-money on the strike price. The details are as follows:
Sell to open: QQQ Oct 9th (weekly) 288.00 strike calls for a credit of +0.80. This is a very aggressive “naked call” position that has a large risk profile. So, we will need to manage risk aggressively to avoid taking bigger losses.
We also bought 15 more shares of GILD today at 62.93/share.
Have a great weekend!