I hadn’t noticed the 140.00 target shown in the chart until today, but it looks quite promising as a place for QQQ to make an important top. Accordingly, I’ll suggesting trading as follows: Bid 0.30 for eight June 9 139.50 puts, good through Friday; and bid 0.80 for four June 9 140 puts, day order, as long as QQQ has traded no higher than 140.09. I am banking on downside targets for the options to give us the right price, but I am also factoring time decay for the 140 puts, since the implications of a four-day week following the holiday will not be lost on those inclined to short the puts. Stay tuned intraday, since I might need to adjust these prices on-the-fly. Although I’m mildly in love with the 140.00 target, don’t go hog wild with this bet, since we’ll be stepping directly in the path of a runaway freight train that has been mowing down bears for more than eight years. _______ UPDATE (May 25, 11:26 p.m. ET): QQQ opened at 140.31, negating our order for June 139.50 puts. For Friday only: Raise the bid for eight June 9 139.50 puts to 0.40, day order. I wouldn’t deign to show you yet one more chart with a promising rally target. The FAANG stocks, and therefore QQQ, have shredded them all, and it would be foolish and presumptuous for me to to suggest the next target will be The One.
