• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

Trade Alert - (QQQ) March 15, 2021 - BUY

Trade Alert

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.


Alert

 

Trade Alert - (QQQ) - BUY

BUY the Invesco QQQ Trust NASDAQ ETF (QQQ) April 2021 $340-$345 in-the-money vertical BEAR PUT spread at $4.30 or best

Opening Trade

3-15-2021

expiration date: April 16, 2021

Portfolio weighting: 10%

Number of Contracts = 24 contracts

It is clear that tech stocks and the bond market is joined at the hip. And with another 37-basis point to go before the ten-year US Treasury bond hits my 2.0% target, that means more downside in tech may be in store. Massive government borrowing is assuring we will get there sooner or later.

It is therefore prudent to hedge out some of the downside risks in my long stock holdings, especially in technology. After a meteoric move from March to August 2020, tech has been dead in the water. It now seems like capitulation is in order.

We’ve just seen a nice 23-point rally in the (QQQ), so this is not a bad entry point on the short side.

I am therefore buying the Invesco QQQ Trust NASDAQ ETF (QQQ) April 2021 $340-$345 in-the-money vertical BEAR PUT spread at $4.30 or best.

Don’t pay more than $4.70 or you’ll be chasing.

Only use a limit order. DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

This is a bet that the Invesco QQQ Trust NASDAQ ETF S&P 500 (QQQ) will not trade above $340.00 by the April 16 option expiration day in 24 trading days. If the market gets that high in 11 days, you will think you have died and gone to heaven.

If you don’t do options, stand aside. This is a very short-term options expiration play only.

Here are the specific trades you need to execute this position:

Buy 24 April 2021 (QQQ) $345 puts at………….………$30.00

Sell short 24 April 2021 (QQQ) $335 puts at………….$25.70

Net Cost:……………......…………….………..………….….....$4.30

Potential Profit: $5.00 - $4.30 = $0.70

(24 X 100 X $0.70) = $1,680 or 16.27% in 24 trading days.

 

If you are uncertain on how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.

 

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://www.madhedgefundtrader.com/wp-content/uploads/2016/02/Alert-e1457452190575.jpg 135 150 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-03-15 11:31:192021-03-15 11:34:24Trade Alert - (QQQ) March 15, 2021 - BUY

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: March 15, 2021 Link to: March 15, 2021 March 15, 2021 Link to: March 15, 2021 - Quote of the Day Link to: March 15, 2021 - Quote of the Day March 15, 2021 - Quote of the Day
Scroll to top