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 Hi readers! Today I will be talking about a spread that I made on my trading account. 



Here is a photo of my account right now:



I did roll over my previous options, since they were not profitable. I made a long QQQ straddle at strike price 382.5 last week, and to make money on this trade, the stock QQQ has to either go down in value enough to cover the premium of the spread, or up in value enough in value to cover the premium of the spread. I paid about $14.80 for each spread, and I bought 10 of them, so in total it cost $14,880. The breakeven points for this spread would be $397.3 to the upside and 367.7 to the downside. The breakeven points are a bit wide because the spread cost relatively more than other straddles. 


Currently, QQQ is trading at 382.79, and that is a good sign, since I bought the straddle ATM, meaning QQQ was at 382.5 last week. This spread expires at August 25, so QQQ has to make a bigger move before then. I am thinking of buying or selling another option to help manage the loss in the spread so far. Since the stock has not moved significantly so far, I am thinking of selling 10 call options at strike price $90, at premium $4.22. So, the credit I accumulate from this trade will be $4,220. I will do this trade because since QQQ has not made any significant moves in the past week, I think QQQ will not make any huge moves in the next couple of weeks. So, if all goes according to plan, the short calls will be worthless and I get to keep my credit. But, most likely that will not happen, so if QQQ starts to move up, I will have to adjust the position even more. I will just have to wait and see which direction QQQ starts to go in, then I can buy stock and maybe even convert my options into other synthetic options. 


That is it for now, and in my next post I will be talking about 2 other spreads I plan to make this week, a SPY time spread and a BAC ratio spread. Thanks and see you next time!

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