Today we discussed some of the fundamental (long-term) factors that may weigh against the markets future returns. While the long-term indeed takes a very long time to play out. We have entered into a Covered LEAPs put strategy on QQQ. Technically, there may be a small “false breakout”. But this will be more of a long-term growth/income strategy. We expect to hold this position for multiple months. It is very high-risk with $4,500 of max risk per spread. The details are as follows:
Buy to open: QQQ Dec 18th ,2026 – 450.00 strike put
Sell to open: QQQ April 19th ,2024 – 428.00 strike put
Debit: 45.00
Max risk = 45.00 or $4,500 per spread
Max reward = Unlimited on the downside