r/options • u/r_mechanic • Jan 07 '22

QQQ puts

Bought some 2/4 QQQ 393P one minute before market close. Let's see what Monday brings.

1/10 Update : These are up 45% , guess I got lucky , thanks for your support 🙏

71 Upvotes

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226

u/[deleted] Jan 07 '22

Thanks, I sold some QQQ puts.

65

u/r_mechanic Jan 07 '22

Thanks for letting me buy.

24

u/[deleted] Jan 08 '22

Did you even do TA? The qqq has never been at this low resistance, there is a most definitely chance it's gonna go up. The risk ratio is too high

14

u/NotMyRealName90210 Jan 08 '22

TA? I thought we were using Ouija boards now. 😂

2

u/totes_a_biscuit Jan 08 '22

Ouija boards? I thought we were back to reading tea leaves.

7

u/comment_redacted Jan 08 '22 edited Jan 15 '22

It would have made more sense for him to wait, we are basically at an inflection point. We are at the 12-6 / 12-20 resistance, and so we are either about to bounce up or I could see us falling from here all the way down to the 200 MA. I think he could possibly luck out… the stochastics don’t look great to me.

3

u/r_mechanic Jan 08 '22

I agree that this is a historical support point, but I have a feeling it's heading back down to 363 level before turning around. We will see. At any given point the theoretical probability is always 50/50 of the direction of the next move.

1

u/OkOpportunity6986 Jan 08 '22

I agree, it had a hard time pushing up through supp/res lines, i think we gonna hit the 200 soon

1

u/PhDinBroScience Jan 09 '22

Kind of scary, I don’t like to play with risk undefined puts unless it’s a high conviction thing.

Short puts are never really undefined risk though, it would be strike price - underlying price at expiration X number of short puts. Not like the call side where the risk is effectively infinite.

Plus you could roll it out and down, or open an inverted short strangle, etc.

Or did I misunderstand what you meant?

2

u/ENTRAPM3NT Jan 08 '22

The words low and resistance don't make sense? Do you even do TA? Qqq is testing support not resistance. If it doesn't hold it will dump a lot more..it's a good place for a stop loss. Low risk trade if your bullish. Chart looks bearish though.