Counter Trend Trade on QQQs. I am expecting the stock to take a breather and back test previous high. Looks like a 4 to 1 Risk to Reward ratio.
OPTION PLAY:
QQQ Aug 23 360 Put
2 Contracts Limit Buy $6.41
Thesis
OPTION PLAY:
QQQ Aug 23 360 Put
2 Contracts Limit Buy $6.41
Thesis
- Island Reversal
- Possible Double Top formation.
- Noticeable Negative Divergence on the building between price action and RSI.
- Buy Volume is decreasing.
- VIX at rock bottom support.
- 3 Days of buyers instantly trapped by today's gap down.