[Creating Spread on Q's]
Dear Member:
Last week, I bought the Jan 45 puts (QQQMS) on QQQQ when it looked to me as though the market was going to continue to drop. It didn't so I want to reduce my risk in the initial position for which I paid $1.78 and ultimately am trying to turn the position profitable overall.
I am placing an order to sell to open the Sept Q3 47 puts (UQQUU) at a limit of $0.67. If filled, I will have a diagonalized calendar spread where I am long the Jan 45 puts and short the Sept Q3 47 puts. If QQQQ stays up, I will have several more opportunities to sell puts with differing expirations and/or strikes to try to get my initial investment and maybe more back.
DISCLOSURE: At the time of publication, I have long put positions on QQQQ.
Sincerely,
Bill Kraft
|
