Portfolio Update: In And Down, But Not Yet Out.

So picture this; I saw that the QQQQ was going to gap up so instead of setting my entry point right away, I waited for the market to open and watched the initial behavior. Low and behold, QQQQ pulled back to the previous day's close before moving back up again. So once I saw one 5 minute interval of positive trading I set my buy order for 10 of the QQQQ 20110122 $55.00 calls. As a protection I set a stop for 20% of my entry price and one time during the day increased it as the option rose into the profitable range.

The good news is that I saved myself a little on the initial principle. The bad news is that the NASDAQ, of which QQQQ is based on, could not push much higher than it's open, and systemically fell apart in the last hour of trading. What I have now is a highly leveraged position with a $80 paper loss, that is on the verge of becoming a slightly higher and realized loss unless tomorrow is something all positive. That is my opinion, you can take it or leave it. Disclaimer: See bottom of page. http://investorsopinion.blogspot.com

QQQQ - PowerShares QQQ Trust ETF