DailyPlay – Opening Trade (QQQ) – November 8, 2024

QQQ Bullish Opening Trade Signal

Investment Rationale

Invesco QQQ Trust (QQQ) – The conclusion of an election cycle often provides market clarity, reducing volatility and boosting investor confidence. Our post-election strategy began with the purchase of a bearish long put spread on the VIX index (DailyPlay – Opening Trade (VIX) – October 25, 2024), anticipating a decrease in volatility. Next, we bought in-the-money calls on the XLF, the financial ETF. Looking ahead, the tech sector creates global value by improving efficiency and addressing challenges across various industries. QQQ stocks are well-positioned to drive these outcomes, supporting continued growth and gains.

QQQ – Daily

Trade Details

Strategy Details

Strategy: Long Call

Direction: Bullish Calls

Details: Buy to Open 1 QQQ Jan 17 $495 Call @ $31.34 Debit per Contract.

Total Risk: This trade has a max risk of $3,134 (1 Contract x $3,134) based on a hypothetical $100,000 portfolio normally risking 2% (3% in today’s case). We suggest using 2% of your portfolio value and divide it by $3,134 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue its bullish trajectory.

1M/6M Trends: Bullish/Bullish

Relative Strength: 8/10

OptionsPlay Score: 79

Stop Loss: @ $15.67 (50% loss of premium paid)

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Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Thursday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

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