Options Trading: Bearish View On QQQ

Time to reveal my options strategies for next week. My current portfolio beta-weighted delta is +2. Hence, I am currently looking for some negative delta position to re-balance the portfolio delta towards neutral. Another thing that need to be pondered over. US Election is on 3 Nov. Personally I would like to sit out from this election – avoiding unexpected risk. Hence any option strategy will have to expire before 3 Nov.

Came across QQQ. Technically, it looks bearish to me. QQQ has been sold down in line with the recent meltdown in tech sector.

I am looking at take at a credit call spread option strategy – 298/300. (with DTE of 41 days, OTM of at least 89%). IV Rank is reasonable at 34.5 with IV of 33.3%. I am taking a higher OTM % due to potential risk that tech stocks may have been oversold.

Disclaimer: This is not an investment advice or endorsement. Please refer to the general disclaimer of this blog.

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