Option Investor


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PUT IT OUT THERE!When I woke up early this morning, the futures were up $2.50 -- indicating a positive opening for the market. But now, at about 8:10 a.m., things have reversed and the futures are now down $5.00 -- indicating a significantly lower open. That could very well change in the next hour before the open, but that's the information we have to work with right now. In pre-market trading, however, the QQQQs are not trading down much.

Taking Advantage
In our QQQQ ITM Strangle position, we recently bought back our short $36.625 puts for $.10 and are waiting for an opportunity to resell it at a profit. This may be our chance. The $37 support level still looks pretty solid, but if the QQQQs spike down at the open we might be able to snatch a little extra profit.

The nice part about placing orders is that it doesn't cost you anything. The price is right. So, I'm going to throw an order out there to:

Sell to open 10 QQQQ March $37 puts at $.35.

That would give us an additional $.25 ($250) profit on our 10 contract position. That would be nice. It may happen. It may not. But, again, it doesn't cost you anything to try.

Remember that famous quote -- that is oh so true. "You can't make any shots you don't take."

Good luck and trade smart!

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