Our lowball bid last week for 16 Nov 20 305/310/315 call butterflies was filled at 0.10, giving us a speculative exposure to an explosive post-election rally. Presumably this would occur if Trump is the winner, since there would be precious little to celebrate on Wall Street if a socialist and her senile running mate emerge victorious. I’ve altered my expectations for the rally, however, and now think it will be short-lived in any event. That means we might have to settle for less than the potential 50-to-1 payoff if QQQ ascends toward 310 between now and November 20, when the options expire. It’s still a pretty good bet in my opinion, one for for which we are getting distant-longshot odds. Please note that those odds would change for the worse if QQQ slips below 260.11 on Monday or Tuesday, since that would negate the bullish rally pattern itself along with the 312.99 target. _______ UPDATE (Nov 4, 11:44 p.m. EST): Today’s strong rally allowed subscribers to exit half of their positions for as much as 0.25 — two-and-a-half-times what we paid for each butterfly spread. QQQ rallied 15 points today alone, so a further rally of 18 points to the 305 sweet spot over the next 20 days is hardly unthinkable. In the meantime, we have reduced our risk on the remaining eight spreads to zero, with the theoretical possibility of making as much as $500 on each spread, or $4,000 for the lot of them. Our initial outlay was just $160. ______ UPDATE (Nov 5, 9:09 p.m.): The spread traded for as much as 0.52 at the top of today’s blast — more than five time what some subscribers paid for it last week. You’re on your own now, but be sure to keep a few contracts for a possible jackpot payoff. _______ UPDATE (Nov 12, 9:08 p.m.): Although the bearish pattern shown lacks the one-off ‘A’ that would make it perfect, it looks good enough to use for tightly stopped bottom-fishing at 282.87. This is a day trade, since taking a position over the weekend is would just be looking for trouble.
QQQ – Nasdaq ETF (Last:288.41)