TheOptionPlayer.com sets up a Nasdaq Index ETF (NasdaqGM: QQQ) short-term (32-day) option trade (based on Monday’s closing quoted bid/ask prices)
Investors could simultaneously:
The difference between funds received and paid out is an approx. 19% profit if the Nasdaq Index ETF closes below $158 on Friday December 15th, but immediately execute a trade adjustment if it appears the price is moving higher. If the price gaps higher at the start of trading we might revise the strike prices. See Guidelines page at www.theoptionplayer.com/ for explanation on how trade is set up.
Why we recommend it:
We executed similar trades the past few months that are profitable. As confirmed in the chart below, similar to the other major equity indexes the Nasdaq Index ETF (NasdaqGM: QQQ) is trading near all-time highs this week. QQQ ETF has been trading at the extreme overbought level and the price overdue for a pullback. Though the Nasdaq index is at all-time highs that rise is primarily driven by five stocks. The Nasdaq Index ETF upward move is stabilizing and upward momentum is dissipating. If will be difficult for the Nasdaq Index to continue making a series of all-time highs until the extreme overbought condition is resolved. There is a high probability the QQQ ETF will to be below our short call on the December 15th option expiration date.
52-Week High: $154.54
52-Week Low: $114.03
Regular www.theoptionplayer.com subscribers can attest to the preponderance of successful trades published on this website.