The QQQ Sep 19th $450P bought last week reached a 200% return this morning, As the 120 minute QQQ chart below illustrates, the assumption is that a Wave 3 of 5 is underway, targeting an ultimate range of 410-400 in the weeks ahead. This was, upon initial purchase, a deeply out of the money option which today is knocking on the door of being in the money. If only they were all this dynamic. As for trade management, taking profits and rolling into a more leveraged strike is on the table, as is just holding onto these puts until closer to expiration, at which time it is conceivable that QQQ will be in the 300's. QQQ 120 Minute PRO Service Trade Management Expect retracements as Waves 3 and 5 unfold in the weeks ahead. There is no high confidence way to trade around the give-back rallies which is one of the reasons we went to September expiration. Suffice it to say that our trend model and pattern recognition reasons for taking this trade in the first place remain on course for a continuing selloff with much higher rewards to come. PS: Last minute edit: QQQ closed yesterday @ 463.38, touched a low print of 455.65 this morning and subsequently has retraced all the way back into the low 460's. This too shall pass. Expect lower lows in the days ahead.
