jay_beckner

I play poker and trade options, seeking edges from study, reflection and analytics.

#011 SQQQ Calls Closed Loss

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Trade Details: Sold to close 7 Nov 19th ProShares UltraPro Short QQQ ETF (NASDAQ:SQQQ) 14 calls for $0.50 (in at $0.50 for 1 day), $341.25 total proceeds. The trade executed at 11:01:54 when the ETF was approximately $14.00.

Return: (4.9%) after commissions

Note: What a night! As the election unfolded, this position looked like it would be a 10-bagger by the open, but it was not to be. The overnight futures told a story of shock as Trump moved closer to winning the White House, but investors were soothed by the President-elect's message of unification, infrastructure and business-friendly policy.

There isn't much to say about this trade other than why I decided to close it. Obviously, a gap down in the QQQ and a spike up in the VIX was the scenario to make this a winning trade. When that didn't happen, holding options in a triple levered ETF that wasn't moving favorably did not make sense. Without much experience trading in this market, I learned quickly that liquidity and pricing is something that must be considered when trading options on levered exchange traded funds (i.e. as I tried to exit, my orders quickly shifted the bid/ask of the contract).

While that gamble was entertaining, it's time to get back to system-based disciplined trading.

Status: Account $2,243.95 | Q2 Return (41.3%) | Q2 Goal 59%

#012 SLB Calls

#011 SQQQ Calls