QQQ options VERY expensive

[ForexForex]

Quote from ForexForex:

Wow ..... The premiums on the QQQ August 05 options are expensive, a QQQ strangle will cost $242.00, last Friday a QQQ July 29 strangle was about $78.00.

This is obviously because of the debt limit deadline.

I just entered this trade. QQQ 56P / 57C strangle - Live trade in progress.

• QQQ @ $56.74
• Buy QQQ Jul 2011 56.00 Put @ $0.2672 http://finance.yahoo.com/q?s=QQQ110805P00056000
• Buy QQQ Jul 2011 57.00 Call @ $0.3572 http://finance.yahoo.com/q?s=QQQ110805C00057000
• Total debt $62.44 commissions included.
• Last day of trading August 05, 2011.
• Will update when I close position.

 

[ForexForex]

Quote from ForexForex:

I just entered this trade. QQQ 56P / 57C strangle - Live trade in progress.

• QQQ @ $56.74
• Buy QQQ Jul 2011 56.00 Put @ $0.2672 http://finance.yahoo.com/q?s=QQQ110805P00056000
• Buy QQQ Jul 2011 57.00 Call @ $0.3572 http://finance.yahoo.com/q?s=QQQ110805C00057000
• Total debt $62.44 commissions included.
• Last day of trading August 05, 2011.
• Will update when I close position.

UPDATE - POSITION CLOSED

• Sold the QQQ Aug 2011 56.00 Put @ $0.63 http://finance.yahoo.com/q?s=QQQ110805P00056000
• Sold the QQQ Aug 2011 57.00 Call @ $0.12 http://finance.yahoo.com/q?s=QQQ110805C00057000
• P/L $9.81 / + 15% commissions included.

EDIT: Typo in the quoted post. July should be August.

 

[syswizard]

Quote from ForexForex:

UPDATE - POSITION CLOSED

• Sold the QQQ Aug 2011 56.00 Put @ $0.63 http://finance.yahoo.com/q?s=QQQ110805P00056000
• Sold the QQQ Aug 2011 57.00 Call @ $0.12 http://finance.yahoo.com/q?s=QQQ110805C00057000
• P/L $9.81 / + 15% commissions included.

Nice. What's next ? Premiums are soaring....time to sell puts ?

 

[spreadem]

Nice. What's next ? Premiums are soaring....time to sell puts ?

Exactly. Option sellers are licking their collective chops in times like these.

 

[increasenow]

Are you aware there are both weekly and monthly QQQ options and bit have high volumes? Probably what you are looking for...please research this

 

[heech]

Quote from spreadem:

Exactly. Option sellers are licking their collective chops in times like these.

Not me. I make my money in 99% of market conditions, I don't need to be selling premium after a 3-sigma move in equities last week + S&P downgrade + potential Euro collapse.

I'm waaaaaay on the sidelines. I'm in the stands selling peanuts.