May 22, 2017

Another Gap Fade Success! Options Strategy up 24.2% YTD. Enjoy the Profits!

Yes, another successful trade in the NASDAQ 100 (QQQQ) Gap Fade options strategy today. The market moved sharply lower at the open and as a result a signal was triggered in the Gap Fade strategy. About 90 minutes later I was out of the trade for a 6% gain on the day. Check out the details of the trade here. It was the 8th trade of the year. Yes, I have only been exposed to this market for all of 8 days in the Gap Fade strategy. Amazing, eh. Some of you are slowly catching on; trading every day or just using an options strategy that exposes you to the market on a daily basis will eventually catch-up to you. If you feel like you must have action every day then why not at least hedge your strategies with one of mine? As I always say the … [Read more...]

Gap Fade Trade and Much More

Gap Fade Strategy The market gapped sharply higher today and as a result a Gap Fade strategy signal occurred. The Nasdaq 100 (QQQQ) opened at $44.45, or $.43 higher than Monday’s high of $43.10 (reference graph below).  As a result I placed the following trade shortly after the open. Buy to open QQQQ May08 45 puts (QQQQS) for a limit price of $1.92. I did have concerns about the potential of a gap fill (mentioned in the premarket comments on the Insiders page) today. Typically the first few days, especially the first day of the month are seasonally bullish. However, the large gap to the upside today pushed the underlying QQQQ into an overbought state and just under what looked like fairly strong overhead resistance. The … [Read more...]