June 27, 2023
Sell a Third of Existing Position: Sell a Third of the QQQ December 370 Puts for $20.25 or more.
The Nasdaq ETF (QQQ) broke to a new recent low yesterday, though still looks fine. Let’s lock in a profit of approximately 15% on a third of our position, and then step back and evaluate the market in the days to come.
To execute this trade you need to:
Sell to Close a Third of your QQQ December 370 Puts
The reason I’ve decided to take partial profits on this position is because we have taken partial profits on many of our bullish positions recently as well, and for now at least, the market looks pretty good.
Stepping back, if you prefer to hold your full position as a hedge against your personal portfolio, that is a fine choice as well.
June 16, 2023
Sell your SPY September 400 Puts and Buy a Full Position of the QQQ December 370 Puts (exp. 12/15/2023).
Today we are going to make some moves, based on the positions in our portfolio. This is what I mean …
The three best performing stocks we own right now are SHOP, UBER, DKNG(though BSX is making a move as well). These three stocks largely move with the Nasdaq (QQQ). Because of that, let’s sell our SPY puts, and roll that capital into QQQ puts that should protect SHOP/UBER/DKNG.
Please note, we will need to put fresh capital into this QQQ put buy, and I am buying a full position.
To execute these trades you need to:
Sell to Close the SPY September 400 Put
Buy to Open the QQQ December 370 Put.
To clarify, I am NOT calling a top in the QQQ. In fact, I can see a scenario where the QQQs continue to run, maybe even to a new high.
However, that would be a fine scenario as we would likely continue to ramp up our bullish exposure as the market strengthens, and it is likely that SHOP/UBER/DKNG will also continue to move higher.
Finally, our FTI June Covered Call position is likely to be called away today as the stock is trading $0.75 above our short strike price. We will simply let our stock and option position expire today, and you do not need to address this position.
| Position (Original) | QQQ December 370 Put |
| Position Strategy | Buy Put |
| Opened Date | June 16, 2022 |
| Expiration | December 15, 2023 |
| Net Price | 17.87 |
| Strike | 370 |
