This is our 2nd newsletter today. Previously, we took profits on a SNOW 1×2 call spread. Today we discussed market outlook. Scanning sectors and how we find trading opportunities. We also entered into two (2) new trades. One was a re-entry into a short stock trade in QQQ. The other, a new bearish trade on the Industrial Sector XLI. The details as follows:
New Stock Trade in QQQ:
Sold Short 30 shares of QQQ at 374.40
Buy to cover stop-loss above at 377.71 good til canceled (GTC) order
Bought a Put Butterfly spread in XLI:
Buy to open: XLI Nov 17th (monthly) 105.00 strike put (ratio of 1)
Sell to open: XLI Nov 17th (monthly) 100.00 strike put (ratio of 2)
Buy to open: XLI Nov 17th (monthly) 95.00 strike put (ratio of 1)
Debit: 0.77
Max risk = 0.77 or $77.00 per spread
Max reward = 4.23 or $423.00 per spread