[Buying the Mar 39 Straddle on Nasdaq 100 Trust (QQQQ)/Simultaneously Buying Mar 39 Calls (QQQCM) and Mar 39 Puts (QQQ0M) on QQQQ/Day Order/Limit 3.70]
Dear Member,
I like playing whole markets, and I perceive an opportunity in the "Q's" for a straddle playing the Nasdaq 100 tracking stock. I am placing an order to enter a straddle on QQQQ by simultaneously buying the Mar 39 calls (QQQCM) $2.40 x $2.50 and the Mar 39 puts (QQQOM) for a net debit of $3.70.
Currently the Implied Volatility of the QQQQ's is only in the 7th percentile which means the options are relatively inexpensive. The most that can be lost without adjusting would be the original cost and the whole cost could only be lost if the stock closed at exactly 39 on expiration day. If the stock moves relatively rapidly in EITHER direction and/or if implied volatility increases, I can profit.
QQQQ has just broken above the downtrend line and has been consolidating which leads me to conclude that it may be ready to move.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft for
CutLoss, Inc.
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