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Quant Trader
Expert-Level Options for Sophisticated Traders

March 19, 2024

I’m adding another new bear call spread to the mix and intend on adding several more trades over the coming days.

Nasdaq 100 ETF (QQQ) – New Trade

I’m adding another new bear call spread to the mix and intend on adding several more trades over the coming days.

IV: 19.3%
IV Rank: 35.8
Expected Move (Range): The expected move (range) for the April 26, 2024, expiration cycle is from 420 to 458.

Call Side:


The Trade


  • Sell to Open QQQ April 26, 2024, 460 call strike
  • Buy to Open QQQ April 26, 2024, 465 call strike … for a total of $0.91. (As always, the price of the spread can vary from the time of the alert, so please adjust accordingly if you wish to take on a position.)

*Our margin of error is roughly 5.0% to the upside
Delta of spread: -0.05
Probability of Profit: 80.16%
Probability of Touch: 38.19%

Total net credit: $0.91
Total risk per spread: $409
Max return: 22.2%

Risk Management

Since we know how much we stand to make and lose prior to order entry we can precisely define our position size on every trade we place. Position size is the most important factor when managing risk, so keeping each trade at a reasonable level allows not only the Law of Large Numbers to work in your favor … it also allows you to sleep well at night.

I tend to set a stop-loss that sits 1 to 2 times my original credit. Since I’m selling the bear call spread for roughly $0.91, if my bear call reaches approximately $1.82 to $2.73, I will exit the trade. As always, I will keep you updated on the status of the position (in the weekly reports) as it progresses and send any necessary updates.

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Andy Crowder is a professional options trader, researcher and Senior Analyst at Cabot. Formerly with Oppenheimer & Co. in New York, Andy has leveraged his investment experience to develop his statistically based options trading strategy which applies probability theory to option valuations in order to execute risk-controlled trades. This proprietary strategy has been refined through two decades of research and real-world experience and has been featured in the Wall Street Journal, Seeking Alpha, and numerous other financial publications. Andy has helped thousands of option traders learn and implement his meticulous rules-driven options trading strategies through highly attended conferences, one-on-one coaching, webinars, and his work as a financial columnist. He currently resides in Bolton Valley, Vermont and when he’s not trading, teaching and writing about options, he enjoys spending time with his wife and two daughters, backcountry skiing, biking, running and enjoying all things outdoors.