Executive Summary
Trade set up not perfectly chosen, we do and learn.
The market down less than minus two percent looks bullish.
We try to avoid a potential post-central-bank lottery rally.
Lack of time to maturity plus recent price development make us exit the trade early with a little less than 2% return on capital.
1. Recap Situation
We entered into a good QQQ set-up a week before we published this trade, and we were fortunate to close it today for a 35% return on capital. This publicly posted latecomer trade was already a little volatility deflated, plus it had a slightly worse strike price starting point and overall less time to play out—all in all, a good lesson for us. In the future, we will only post timely trades and no theoretical laggards.
Check out the original BrainDoζer thesis below.
2. Why Now?
Lots of bad news hit the streets, and neither NASDAQ (QQQ) nor S&P 500 (SPY) seem to care. A downward move of less than minus two percent looks pretty bullish on a day like this. Maybe t…
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