What can you say? Funds want the market higher going into quarter end. Apparently, all the sub prime worries have all gone away and no one is going to default on anything ever again. That’s good news. (That’s sarcasm for some of you out there.)
There is no sense in fighting a trend. Wait for your price or don’t buy anything. The bias in all capital markets is up. Just burn that into your memory when trading.
For me, I’m looking closely at some QQQQ index puts. Something in the money by maybe 2 or 3 points. I’d love to buy the Apr 46 Puts for $1.10 tomorrow on a nice morning gap up that pushes the QQQQ’s near the 45 strike. That may be asking a bit much. If there is no gap, then I still might play them for $1.50.
This is merely a trade. And, it would be a quick one at that because I really don’t want to hold over the weekend.
Stay sane.
CC
Update: NAL moved up by .35 cents but the option price barely budged. I said I over-paid for the 10 contracts and it’s painfully evident now. Please see this post and pay particular attention to the channel comment and look at the stocks price then and now.
This is a great trade to study and learn about option pricing when rumors abound. Rumors are often just that, rumors. (I still get caught in these silly trades only now with limited capital.)
Always the optimist: We still have time on the Calls but I’m still looking for the exits.
