Symbol traded: QQQ (9DTE)
I’ve entered a short bull put Vertical Spread on QQQ, based on Elliott Wave Analysis of the chart that shows that an uptrending 5th wave of low degree is underway. The position has a target of 50% of maximum potential profit.
The position expires on February 2, with a management date of January 29. On the management date, I either take any profit or decide how to handle a loss.
January 31, 2024: And I’m out, for a significant loss. The S&P 500 reversed after a truncated 5th wave uptrend, and that made this position no longer viable. I exited.
QQQ short bull put Vertical Spread
| LOT: | 5 | ENTRY DATE: | 1/24/2024 |
| EXIT DATE: | 1/31/2024 | ||
| DAYS HELD: | 7 |
Entry and Exit
| METRIC | CREDIT (ENTRY) | DEBIT (EXIT) | CHANGE | CHANGE % | ANNUALIZED CHANGE % |
| Options premium | $ 0.93 | $ 2.63 | $ (1.70) | -64.6% | -3352% |
| ENTRY | EXIT | CHANGE | CHANGE % | ANNUALIZED CHANGE % | |
| Stock price | $ 429.49 | $ 419.54 | $ (9.95) | -2.3% | -121% |
| Implied Volatility Rate | 8.9 | 19.4 | 10.5 | ||
| Days to expiration | 9 | 2 | -7 |
The structure of the position
| STRUCTURE | STRIKE | ODDS EXPIRE OTM | DELTA | IN PRICE | OUT PRICE | NET PRICE |
| Puts | ||||||
| Long | 418.00 | 83.0% | 17 | (1.13) | 2.51 | $ 1.38 |
| Break-even | 423.93 | 77.5% | 22.5 | |||
| Short | 423.00 | 72.0% | 28 | 2.06 | (5.14) | $ (3.08) |
| ====== | ||||||
| -1.70 |
Risk and Reward
| Per contract: | |
| Reward | 93.00 |
| Risk | 593.00 |
| R/R Ratio (n:1) | 6.4 |
By Tim Bovee, Portland, Oregon, January 24, 31, 2024
Disclaimer
Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.
No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decisions for his or her own account, and take responsibility for the consequences.
License
All content on Tim Bovee, Private Trader by Timothy K. Bovee is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at www.timbovee.com.
Tim Bovee, Private Trader 
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