Option Investor
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ANOTHER QQQQ ITM ADJUSTMENT

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ANOTHER QQQQ ITM STRANGLE ADJUSTMENTYesterday, we bought back the QQQQ ITM Strangle March $36 put for $.10. Well, the market seems to be cooperating. It has come down and has presented us with an opportunity to increase our take for March.

If you bought back the $36 put, you might consider selling the March $36.625 puts at $.35. That puts an additional $250 into our pockets (for a 10 contract position). Support at $37 still looks pretty good.

You may want to hold on to see if the QQQQs go down even further. That's up to you. Just don't get too greedy. The delta of the $36.625 put is about -36. That means the QQQQs would have to go down about another $.15 (to about $36.90) to get another nickel on the option.

Also, if the market continues down, keep an eye on the $38 call. If you have a chance to buy it back for a dime in the next few days, it may not be a bad idea.

Good luck and trade smart!

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