After yesterday's large market run, everything was poised to open lower today like yesterday. After the morning spike up, downward movement was coming. It was obvious that the movement was very muted today unlike past Friday's when Alphabet (GOOGL) would give up 20 to 30 points in one morning.
I decided that today I would trade options on the QQQ ETF instead of on Alphabet. I find that Alphabet's options are very expensive as are all of the FANG stocks, but this ETF moves with FANG and doesn't appear to have the premium pricing. I was very profitable with my initial trade. Unfortunately I tried to jump in on the other side too quickly without clear signals and gave back half of my profit. I also didn't have anything left for latter in the day when there was the largest movement from 3 to 4pm.
Below I have the charts for Alphabet (GOOGL), QQQ and TQQQ so you can see the similarities. I also made a quick video trading lesson on my YouTube channel.
I decided that today I would trade options on the QQQ ETF instead of on Alphabet. I find that Alphabet's options are very expensive as are all of the FANG stocks, but this ETF moves with FANG and doesn't appear to have the premium pricing. I was very profitable with my initial trade. Unfortunately I tried to jump in on the other side too quickly without clear signals and gave back half of my profit. I also didn't have anything left for latter in the day when there was the largest movement from 3 to 4pm.
Below I have the charts for Alphabet (GOOGL), QQQ and TQQQ so you can see the similarities. I also made a quick video trading lesson on my YouTube channel.
