Investor's Opinion

Portfolio Update: Flat Markets Bad For Long Options

Published: 2010-12-10 13:28:00 EST by Unknown

Well, I was just stopped out of the position I BTO on Wednesday. My position of 5 QQQQ 20110122 $54.00 puts stopped out at $1.18 for a 25.7% loss. It is my belief that I gave the drop in price on Tuesday way too much credit. I really should have took into consideration that the price of QQQQ still closed higher than the previous day's close. That being understood now, I believe that it is important not get in until after there is a confirmation day, and not get in on what you think will be a confirmation day.

My forecast for QQQQ is that if it does break above $54.52, I should probably make the 'trend my friend.' That is my opinion, you can take it or leave it. Disclaimer: See bottom of page.

BTO - buy-to-open / bought-to-open
QQQQ - PowerShares QQQ Trust

Labels: opinion, option strategies, put options

Updated: 2010-12-10 13:28:32 EST