so u are holding 1 nq going long into the weekend and also 1 cover call option. That 1 cover call, is that when you selling it and collecting premium? How much premium u collecting? Would I mind posting your transaction trade screen u did today?
I did post all that info above, but I'll break it down here.
Yes, I sold a call with a strike of 13340 for 56.25.
1 contract of NQ is $20/pt.
1 NQ option is also $20/pt so 20*56.25=$1125. I "protected" my position with a 56pt "cushion" for Sunday's open through Monday's session.
Normally I am looking for short plays when the NQ is trading below its 50sma on the 60min chart. So I was short in the morning, but wasn't able to capture any significant moves. I tried to reshort during the bounce at 8am, but had price tgt missed by 3 points before NQ moved siginifcantly down, was a bummer for me.
Anyhow, late day on the 15min chart though, signal to me to go counter trend. If you take a look at 15min chart, a lot of long traders would have stopped out below 13318 which was previous low of the day, normally that would have accelerated the selling especially on a Friday, but for an hr it kept crossing above (giving signs the selling is abating), risk reward seemed good so I took it and was lucky it proved to be the right call.
Bought NQ around 11am after it had made a new low. I used 5min and 1min for the trigger. Pull up a 1 min chart and you can see why I bought it there. A really great, keen trader though would have been able to take 3x20pts in that hr between 11am-12noon and take it more all the way to the close.
I'm not that good so I opted for a 12 pt stop, and initial tgt somewhere ~13370 which was the previous 15min high. It's a bit of a coincidence that the close was right at that level too. I ended up selling the call at around noon since the action at the time suggested we may have peaked with NQ around 13340's and the premium was too great to not do it.
