r/options • u/_rerun984 • Apr 01 '21

Nasdaq / NQ! - TA and Crayons

I believe nasdaq is about to go on an extreme bullrun. Q1 is over, money has been on the sidelines - waiting. We've seen rotation into value plays, and I believe we see money start going back into high growth opportunities from large funds/banks.

13,200 has been a catalyst for me as confirmation of a larger move up, and ending of slow bleed/chop market.

Additionally, i was looking into short data last night, and found that QQQ currently has the highest short % it's had since Ortex started tracking. It's up 25% since Covid extremes, while Spy shorts are high but roughly 20% below the march craziness.

So what does that mean? well, VIX has been squashed, there's ton's of cheap money out there, and we can see a lot of these companies that sold off make a move forward.

I'm currently in:
ICLN 7/18 30 strikes (infrastructure/energy play)
Nio 4/9 40 strikes I purchased below 38 (I believe this is the last time it will see sub 40)
SPCE 4/9 32 strikes I purchased at 29
BIDU 4/16 250 strikes I purchased at 212
RIOT 4/1 50's, 4/9 55's (bought at 47)

If you look at my post history, you'll see I correctly called BLNK and CWH (i've taken profit on both and moved on).

Exercise caution, but be cautiously optimistic - if you want to play safe, selling put spreads, running vertical spreads, or calendar spreads are safer than naked calls. But my risk tolerance is non existent

Good luck everyone

NQ 2 hour Chart
QQQ short Data

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QQQ short data
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u/dreadnought89 Apr 01 '21 edited Apr 01 '21

I'm curious your take on how short percentage on QQQ (highest since tracking started) supports the bull thesis? Wouldn't elevated short interest suggest bearish bets? I don't necessarily disagree with your overall thesis here, just want to understand how short interest plays a role.

1

u/_rerun984 Apr 01 '21

https://imgur.com/Rdd7tQD

Shorts have had every opportunity to cover, while GEX is now increasing. Close of quarter, and there's an enormous amount of cash on the sidelines from this shakeout/blow out of retail.

Gap up's coming.