Trade Alert 1/17/2025

We are closing the butterfly on QQQ we entered yesterday. Yesterday (our entry day) was nice as the stock formed a bearish engulfing pattern. Then today we gapped sharply. This would have been perfect for our trade if it had been to the downside. Instead, it was a big gap up and since this is a really short-term trade (Jan 31st expiry), we don’t have time to waste. We will take the smaller quick loss today. Sell to close:  QQQ Jan 31st (weekly) 505.00 strike put (ratio of 1) Buy to close: QQQ Jan 31st (weekly) 485.00 strike put (ratio of 2) Sell to close:  QQQ Jan 31st (weekly) 465.00 strike put (ratio of 1) Credit:  1.55 Loss of 0.55 or -$55.00 per spread