MAR 2021: QQQ $310 – $315Bull Call Spread
Stock
QQQ
Trade Structure
$310- $315 Call Spread
Trade Date
3/4/2021
Price Paid
$250
Expiration Days
04/16/2021
THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.
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Trade Rationale
QQQ is very hard to fill. As you can see below I had been trying for a $310-$315 spread since 2/23 and although QQQ had flirted with $310 levels, I never got filled. Finally, when it dropped down to $307 is when I got filled for a $310-$315 spread. I can only attribute it to a spike in IV. QQQ has very solid support at $310, but it did get pulled back all the way $296 before bouncing back up slightly. I am guessing some of our members were lucky to get $300-$305 spreads too.
Trade Selection Criteria
Overall market movement
Nasdaq was in deep correction, giving us great opportunities to enter a trade
No Earnings or Significant News
N/A – This is an ETF
Bollinger Bands outside Keltner Channels
Bollinger bands are clearly outside the Keltner Channels.
RSI Analysis
Trade was taken based on support/resistance levels
ADX Analysis
Trade was taken based on support/resistance levels
Trade Analysis
QQQ went all the way down to a little below $300 before recovering from the brutal correction we experienced last month. During these times, you just need to stick to your plan even though it may feel like every trade you put on becomes a loser instantly. QQQ played out beautifully yielding us our 94% profit target.
Trade Outcome
WINNER
Profit/Loss
$235
Beginning Account Balance
$13,500
Ending Account Balance
$10,900
