Chart is courtesy of www.finviz.com
When I saw the price close above the 50 Day Simple Moving average and the Day SMA curvng back up I fugured that I’d buy some QQQ call Options.
Bought 10 QQQ CALL Option contracts at a $220 Strike Price and also 10 QQQ Option contracts at a $230 Strike Price. I wanted to see if one could make more money buying an Option which was further out of the Money (the $230 Strike price). Both option sets have an Expiry of 05/15/2020 and were bought at Open on April 15 2020.
QQQ2015E2202020/05/15 on POWERSHARES QQQ TRUST CALL at $220.00 10 contracts
Bought at $4.07 ea
Price at Close on 04-16 2020 $5.26
Total Value at Close on 04-16 2020$5,260.00
Change +$1,280.00(32.16 %)
Total Gain on the $220 Call so far $1,190.00(29.24 %)
QQQ2015E2302020/05/15 on POWERSHARES QQQ TRUST CALL at 230.00 10 Contracts
Bought at $1.47 ea
Price at Close of 04-16 2020 $1.88
Total Value at Close on 04-16 2020 $1,880.00
Change +$580.00(44.62 %)
Total Change on the $230 Call so far +$410.00(27.89 %)
Total Gain from both sets of Calls +$1,600.00(28.88 % Gain)
So the $230 Call was lower in cost. The closer to being In The Money the higher the cost of the Option. Percentage wise the gain on the $ 230 Call was greater. Because the $220 costs more (it is closer to being In The Money) the Dollar amount gained is greater.
All funds in US Dollars.
The Calls were purchased with an Expiry on May 15 2020, to give things more time to rise.
This post is not meant as investment advice. Please seek out the help and advice of your own Investment Advisor. You can lose money, even all of it, when placing bets at the Stock & Options Market Casinos. Posted for my own education. I’m trying to learn ways to trade the QQQ Options.
Posted by Vincent Banial