Invesco QQQ Trust Series 1 (QQQ)

[royg1927]

Farooq, hi, good morning.

"What you was thinking?"

Well, I'm not into QQQQ today or much earlier this week.

I'm sort of trading RIMM options with the same idea Paul has in mind trading DHI exclusively, that is, to stay with an issue that he has gotten acquainted with enough to be able to get the direction right nearly all the time.

Overall, about the market, I'm just not convinced that the financial hang-ups in the market are yet resolved, and maybe a long way yet to go.

I did not predict the Bear Sterns hullabloo this morning, but I'm not surprised.

I don't know much about high finance, that's for sure, but I do seem to be able to smell some stink lingering around.

That's why I am staying with puts in spite of the strong market run-up yesterday afternoon.

My best reason for riding RIMM is that it has shown (at least in recent weeks) a greater beta than, say, QQQQ or QID or QLD.

If I'm right (certainly NOT a sure thing), RIMM might well retreat to somewhere around 93-94. That's 8 more bucks.

Next week being expiration, the time premium will shrink to nothing and whatever move the stock takes will be almost dime for dime the same for the in-the-money options by Thursday.