I’m expecting a positive trade announcement from USA/China Thursday morning which should create a global equity buying spree.
This QQQ March 29th, 2019 $165 call option contract targets US tech stocks (like Apple) and should go up dramatically on positive trade news tomorrow.
It’s a $2,000 investment from a ~$405,000 model portfolio and yesterday I made a very similar trade alert. This brings my total risk to ~1% of my total assets and I stand to potentially double or triple my investment if this trade pays off.
I’m also frightened that a huge round of quantitative tightening due all year will soon outweigh this positive momentum and at a minimum keep equities range bound.
Above is a chart showing that the VIX (volatility index) is crashing which means right now option premium is relatively cheap and now is the time to take risk purchasing options. I expect this to push much lower if there’s positive news tomorrow sending markets higher for at-least a few more weeks.
Until then expect to see my portfolio play it safe with the TLT waiting for the next big-dip in equities just like we did December 20th.
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Disclaimer: Trading is risky and you can lose your entire investment. These results are based on a hypothetical model portfolio and not real money trades. This is not financial advice. See full disclaimer here. https://portfoliobuilder.io/disclaimer/