Dan’s MRKT Call Trade Break-In:
We have a surprise MRKT Call Trade Break-In! Dan is looking at a put spread in the QQQ after the stock market rally last week. Check out his trade rationale below and drop us a line if you want to see more!
QQQ ($369) Buy Dec 365 – 340 put spread for ~$4
-Buy to open 1 Dec 365 Put for ~$6.25
-Sell to open 1 Dec 340 Put at ~$2.25
Breakeven on Dec 15th Expiration:
Profits of up to 21 between 361 and 340 with a max gain of 21 at 340 or lower
Losses of up to 4 between 361 and 365 with a max loss of 4 above 365
Trade Rationale:
This trade idea risks a little more than 1% of the ETF price, with a max potential gain of ~5.5% if the QQQ is down 8% in a little over a month.
CHARTS:
