Time to close and reset the QQQ calendars/diagonals and reset. We are taking a loss on the close and re-opening a single diagonal and going longer term. This will keep the entry price cheaper and then allow us to move/adjust with the market.
This market itself is choppy and really does not give us a true indication of direction. Higher interest rates favor a lower market but as we know the market can be very irrational.
Note: We are also changing our 50K Portfolio allocation for this QQQ trade from 4 to 3 contracts for now until we see more consistency and less whippy movement in the markets.
Invesco QQQ Trust ETF (QQQ): 292.25
TRADE ACTION 1: CLOSE the QQQ 7 Sep 315/21 Oct 315 call calendar for a credit of around 3.75
BTC the QQQ 7 Sep 315 call
STC the QQQ 21 Oct 315 call
TRADE ACTION 2: CLOSE the QQQ 7 Sep 331/21 Oct 335 call diagonal for a credit of around 0.75-0.85
BTC the QQQ 7 Sep 331 call
STC the QQQ 21 Oct 335 call
TRADE ACTION 3: OPEN the QQQ 21 Oct 292 / 23 Sep 293 put diagonal for a net debit of around 3.70
BTO the QQQ 21 Oct 292 put
STO the QQQ 23 Sep 293 put
The 50K Portfolio is trading 3 contracts; the 10K Portfolio is trading 1 contract.
Note: If you were not previously in the QQQ trade, you can enter this position with our new diagonal spread (Trade Action 3).