Exit calls part of QQQ spread

Yesterday, we jumped in at 1.82 with our calls and today we exit the call side of the spread with the following:

QQQ JunWk1 105.5 Call

2.91

3.06

3.12

37

As you can see people are still holding but you can now exit at around 3.06-3.09.

That is a 59% gain.

Now we have a couple of things we can do at this point. Lets take a look at what our put is doing:

QQQ JunWk1 107 Put

0.44

0.43

0.44

3,399

Last night we got in the put side of the spread at 1.16 That is a loss of 64%.

So at this point if we dump everything, we are at a loss. I say screw that, if you look at it, the put is already at a 64% loss, so its worth gambling with right? That is, gambling by exiting the call, taking the money, and holding the put for a day or two and seeing if things swing back the other way.

And another thing. We are going to do a spread again at this price. I also like things like this because today was a price extreame, very open to further up, or way further down. Now, if we purchase another spread at these prices and the stock drops tomorrow, then its almost like we doubled down with the puts and that helps us make money. Or if tomorrow the stock takes off yet further ahead, then we have two puts out there, one really in the back dust, and another that is recoverable like yesterdays is today.

So, lets take care of our new spread:

Our in for the call side is going to be:

QQQ JunWk1 108.5 Call

0.86

0.85

0.86

1,676

Now our in for the put end of things:

QQQ JunWk1 107.5 Put

0.53

0.51

0.52

1,349

So thats that, we have a few more big earnings announcements for tomorrow.

Thats all for today!

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