OptionSlam Blog

03/16/2010

QQQQ Back Ratio

Filed under: Optionslam Technical Analysis — Tags: — MarkoFibo @ 3:23 pm

here is a little trade which is COUNTER TREND.  So when playing against the trend I never trade with big size.   You will see in the risk graph the contracts taken and the fill prices.  Also you will see this trade is long gamma… (Please read the article right below this post about gamma.)  Now as you can see the risk in this trade is if price stays flat for the next 3 days.  However if it moves up strong I make about $100.00.  If it moves down strong I could easily double my money or more.  There is no limit to profit if I am right about direction.    In any case my entire risk is only  88.00

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