This post is restricted to paying members. To follow are specific new trade details:
Stock / Symbol: Invesco QQQ Trust (Nasdaq ETF) / QQQ
Strategy: Broken Bear Call Spread
Trade entry date / price: 05 Jul 2020 / $257.45
Price at this post: $259.09
Update / Reasoning: With QQQ trading under our short $262 call, we could allow the position to expire worthless and realize the position's full profit potential as long as QQQ finishes the day under $262. However, to rule out a turn-around in the Nasdaq today, I'm going to try to close the trade out prior to market close. I'm just buying back the short call to remove the trade's risk. Also, with TDAmeritrade, closing a short option for $0.05 or less is done commission free.
Trade Exit Details:
BTC 1 QQQ 17Jul20 262 call
For a max net debit credit of $0.05 per contract (day order, limit order). The mid is currently at a debit of $0.08. I have not yet been filled.
Analysis:
Max Risk: $140
Max Reward: $60 or 42% with QQQ at/under $262 by Jul 17th
Profit Range: QQQ under $262.45 by Jul 17th
Estimated Commission (round trip): $3 to $6
Expected Profit / Loss upon fill: $55 or 39% (pre commissions)
