Here's Why I Trade Like This
Caught 120% on $Invesco QQQ(QQQ)$ calls. Here’s why I took the trade 👇
Futures sold off hard overnight, but the dip got bought almost immediately near the open.
While $S&P 500(.SPX)$ was making new lows on the day, $Invesco QQQ(QQQ)$ held the 590 level. That clear relative strength / deviation caught my attention.
The market has been extremely volatile lately, so instead of same-day contracts I went with calls 2 days out to reduce the impact of theta decay and whipsaws.
As the session progressed, QQQ continued to hold strength while the rest of the market struggled, which gave me confidence to stay in the position.
Then the Trump headline about the war nearing completion hit the tape and the market ripped higher.
Closed the remainder of the position around +120%.
Key takeaway:
Relative strength during weakness often signals where the next move comes from.
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