While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.
We were long the QQQ 14 march 89 Put @ .20 cents.
These Puts expire this Friday 3/14/14
We exited the trade within a couple of ticks or where we purchased them.
The QQQ shares needs to close over 90.65 to negate the negative technical pattern that was put in Friday.
A close below 90.00 in the QQQ is needed for more downside.
I sold them because we were not seeing the downside follow through I was expecting.
When markets sit the timing component of the options causes them to lose value quickly.
Of course as soon as I wrote the alert rumors of shots being fired in the Crimea caused the Equity Indices to break.
This is turning into a "he said" "she said" trade.
January, 2014 MediumTerm Outlook-1st-qtr-2014/
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