Purchase QQQ and SPY calls

Today I have seen  very strong bottom signals from both SPY and the cubes, showing that the market is too oversold from the Chinese currency scare. Lets look at both QQQ and SPY:

QQQ today:

And now SPY today:

As you can see, they are both crosses/slight body with long bottom tails. This shows that the price seeked a bottom and then was met with buying resistance and came right back up again. A bottom candle. So in order to maximize profit we are going to do something dangerous. Like danger? It can get your blood going. Here's the deal: Options are about to expire on August 15th. Maybe Id like to make a bit more money that Im used to and purchase these calls and if these ETFs bounce back I can make 50, 100 percent overnight or more. Or if there is more screwed up news tomorrow, we lose a good part of our money. I like to keep positive, I see a stacked deck here. Also, I think the reaction to China has already been priced into the market over the past two days. We come in with August calls.

Here is our QQQ call:

And here is our SPY call:

I actually at the last minute went out a bit further to aug 21 expiration instead of doing the Aug 15th expiration to give us a bit more time and double down if we need it, such as if some drastic news hits tomorrow and things REALLY rocket down. Other than that, I am confident with this trade.


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