A new trade idea around the Fed meeting and technical setup in the markets. We are purchasing a short-term QQQ put butterfly. We don’t think the downside is finished specifically in large cap tech names. The details are as follows: Buy to open: QQQ Feb 21st (monthly) 510.00 strike put (ratio of 1)
Sell to open: QQQ Feb 21st (monthly) 490.00 strike put (ratio of 2)
Buy to open: QQQ Feb 21st (monthly) 470.00 strike put (ratio of 1)
Debit: 2.23
Max risk = 2.23 or $223.00 per spread
Max reward = 17.77 or $1,777.00 per spread