100%-plus Profit on QQQ Puts
by Mike Paulenoff
March 14, 2015 • 12:28 AM EDT
On March 2, Mike added the QQQ 109 puts to his model portfolio at 1.60, when the underlying QQQ was trading at 109.24/25. This past Tuesday, on March 10, he exited the trade at 3.41, when the underlying QQQ was trading at 106.26/27.
The chart below shows what Mike was seeing on March 2. For one, the Q's had reached his anticipated high based on analysis from February 6, which pointed to an optimal target of 107.30 to 109.40 (the Q's reached 109.29 on March 2).
In addition, Mike's weekly RSI momentem gauge was registered yet another lower high, one more reason to doubt the sustainability of the QQQ strength.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
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More Top Calls From Mike
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On March 13, amid a broad discussion about the emerging bull phase developing in the precious metals and miners, Mike Paulenoff posted this about WPM (Wheaton Precious Metals) to our MPTrader discussion room:From a more Silver-Gold perspective (if FCX is perceived to be Copper-centric), let's notice that WPM strength is pushing up against its near-term resistance line in the vicinity of 45.
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During the afternoon session of February 15, this is what Mike Paulenoff posted to the MPTrader Discussion Room about the technical setup in the oil service company SLB (Schlumberger):"This name in the oil service sector exhibits a well-demarcated 4-year bullish channel with the SLB price structure upturning off of the lower boundary line in the vicinity of 47.00 (the 2/13/24 low) amid a glaring double non-confirmation of the weakness into the lower channel line.
On December 26, 2023, fellow MPTrader member FJB asked me the following question: Mike - do you feel comfortable giving some of your top sectors for next year if you have any? This was my response:In order of preference based on my technical setup work:1- XLV (Healthcare)2- XLB (Materials)3- XLE (Energy)4- XLI (Industrials)5- XLF (Financials)As of the close this past Friday, 3/15/24, YTD results showed XLV +6.58%, XLB +6.15%, XLI +7.06%, XLF +8.54%, and XLE (Energy) leading all sectors, at +9.27%.
