TQQQ wave 4 retracement right on the money, target 160Im in at 160, target 188 for wave 5. Copyright Rohan Karunaratne 2020Longby UnknownUnicorn4017959Updated 443
TQQQ filling out wave 5, target 173Copyright Rohan Karunaratne 2020Longby UnknownUnicorn4017959Updated 1
How To Manage A Trade That's In Trouble - My Options Trade On TQI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. What Do You Do When You Find Yourself In A Trade That's In Trouble? So you have a trading strategy. You have your trading tools ready to go at your fingertips. You trade with a paper trading account to make sure your trading strategy is solid. You’re finally ready to start making real trades. You start trading and everything goes according to plan until a trade comes along when it doesn’t. Now you find yourself in a trade that is in trouble. How do you handle this? Well, the first thing you need to remember to do is to keep your cool. One of the most important aspects of trading is being in the right mindset. This is important because trades will go against you from time to time. It’s just the nature of the business, and you can’t lose your cool when this happens. If you aren’t in the proper mindset when a trade goes against you, then you will not be properly equipped to manage it, and I have some good news… there IS a way to manage a trade that’s in trouble. I was in such a trade recently, and I will show you how I handled it. How I Managed A Trade In Trouble Step-By-Step I was recently in a trade with TQQQ . I opened up my trading software and say I was at -$3,500 open P&L with this trade. 1) The first thing that I did is I sold a put with 150 strike price and I received $66 in premium . 2) However, what happened is with this particular trade was I got assigned. So I had to buy 100 shares of TQQQ for $150 each. At this time TQQQ was trading at $116 which was not good because I bought it at $150. However, as soon as I was assigned these shares, I starting selling calls against these shares. This is how The Wheel Strategy works. You first sell puts and collect premium. If & when you get assigned, you then sell covered calls against these shares at a higher strike price to try and get “called away” to sell the shares at a profit, and you keep doing this while collecting premium until you do get called away. Now understand, you will get assigned trading The Wheel Strategy, but trust me this is a good thing. 3) So I then sold a call with a strike price of 155 for $2.10 . Now with this call, I could have actually been “called away” on this trade and sold the shares at a profit, but I felt that I could just instead hold onto the shares to possibly sell them for a higher profit. So I just kept the premium of $210 ($2.10 multiplied by 100 shares) I collected on this, and then the next day I bought the call back for $0.37 . So $2.10 I collected in premium minus $0.37 that I paid to buy the call back, comes to $1.73 which means I made $173 in premium. These are realized profits. 4) Next, I sold another call, this time with a strike price of 150 for $0.45 and I also bought it back for $0.05 2 days later to keep from being called away to sell them later at a higher profit, but collected more premium. So this means if you take the $0.45 I collected and subtract the $0.05 I paid to buy the call back this comes to $0.40 which means I made another $40. If you add up all the premium collected so far ($66, $173, &$40) I have made a total realized profit of $279 so far over the last 15 days, which is not too shabby. 5) The price of TQQQ started plummeting, so instead of selling another call, I instead, decided to sell two puts with a strike price of 100 for $1.14 . I chose to sell two, based on what my account size allowed if I were to get assigned again. So with each share yielding me $1.14 in premium a share, this comes to $114 each contract, and since I sold two contracts, I collected $228 in premium total ($507 overall). What Happens If You Get Assigned again? Now you might be thinking selling puts was a bad idea. I mean, what happens if TQQQ is below $100 by expiration, and I have to buy 200 more shares of TQQQ ? It would actually be really, really awesome if this would happen. There are actually two scenarios of what could happen and they are both awesome. In the first possible scenario, TQQQ stays above $100 by expiration, which is in one week. In this case, I keep the $228 and my total profit from this trade goes up to $507. Now scenario two, and this is the one that would make some people nervous, is if TQQQ drops below $100 on expiration. In this case, I have to buy another 200 shares for $100. Here is why this would be a good thing, and why buying more puts was a smart move, but I’ll let you be the judge. If scenario number two happens, I would have bought 100 shares for $150 and I would have bought another 200 shares for $100. So this means that right now my cost basis is lowered when you average the cost of the total price I would have paid for all 300 shares. So I did buy 100 shares times 150, plus 200 times 100, and I’m dividing all of this by 300 so that I get my average price per share. This means $116.60 is the average price I paid per share. So this means as soon as TQQQ moves back up to $116 I break even, and if it moves above $166 I’m making money. So $116.66 is my new magic level instead of $150. Now look at this, is it more likely that over the next few weeks TQQQ goes above $116.66 or $150? $116 right? So by doing this, if scenario one happens, okay, great, I just keep racking up premium, and that’s fine. If scenario two happens even better, I’m lowering my cost basis here. If the new average price per share is $116.66 per share, instead of what it actually was which was $150, it is easier to get back into the green. Summary This is how I managed this trade. At first glance, it simply looked like it was in trouble, but in reality, all you need to do is keep collecting premium, and when you can, lower your average price per share. Both of these things will lower your cost basis, making it easier to get back into the green when a trade is going against you. This is the beauty of The Wheel Strategy, even when a trade is going against you the strategy is still going according to plan. Educationby rockwelltrading115
Let's try again! Will Tech Join the Reopening Trade? ContinuedI am reposting my trade from November 24th that is still active. So far we have hit our 12% price target twice, and we are awaiting the ninth bullish heiken ashi candle in a row on Monday, on which we will take 50% of the position off no matter what.Longby kylespangladeshUpdated 2
TQQQ ON THE RISE According to the diagram, I predict TQQQ should follow its upward trend. Longby Tictac23631
TQQQ continuation of wave 5 rally, target 173Copyright Rohan Karunaratne 2020Longby UnknownUnicorn4017959222
The simple way for accelerated tech index fund investingDue to it's nature, tripple leveraged products usually grind lower and lower by design, so this is anything but full proof. However, as the market likes the top companies in US collectively, the past decade, on retrospect, it's obviously worked. If things continue trending this same way, this can work for us. The red line is profit taking (not shorting!!) and the green line is regaining positions. This is swing trading. It takes a lot of patience, because you may be waiting for years between taking any actions, which can be nice at the same time. Complementary techniques to this are to use sma 50 and 200 day, waiting for death/golden cross and using large time scale RSI to identify bullish and bearish divergences. This has worked in the past also for the tripple leveraged FAANG products such as FNGU. Not financial advice. Educational purpose and subjective to future market conditions.by Rod_85110
TQQQ slight decline into the close, target still remains at 173Copyright Rohan Karunaratne 2020Longby UnknownUnicorn40179591
Assigned With A Wheel Trade & The Market TanksI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. In this article, I want to talk about what to do when you get assigned with a Wheel trade. Previously, I have shown you the Wheel strategy. It’s a strategy that I’ve been trading for several months and I haven’t had a single losing trade yet, knock on wood. So I received a lot of comments on my videos asking, “Yeah. That’s all good. But what do you do when you get assigned with a Wheel trade and the market crashes?” And that’s exactly what we are going to talk about today. What To Do When You Get Assigned With A Wheel Trade I want to show you how to handle getting assigned when the market crashes by using a real trade as an example where this happened to me, and I couldn’t have timed it more perfectly because a little over a month ago, on October 28th, I was recently in such a trade. The market was down more than 3% and it was a bloodbath. Luckily, this scenario provides me with an opportunity to use it as a template to show you what to do when this happens. The TQQQ trade I was in at the time works as a perfect example, so let me just show you how things panned out. So with this TQQQ trade, had an open P&L of -$2,667. So what does this mean? Does it mean that we do have a big loss here? No. This is only an unrealized loss, and this is how I handled it. I simply followed the 5 steps of The Wheel strategy, and the 5 steps are as follows: Pick a stock that’s going sideways or slightly moving up. Sell a Put Option , i.e. you have to buy the stock at the strike price. Collect Premium and buy the Put back when we see 90% of the profits. If we get assigned, i.e. have to buy the stock, we will sell Covered Calls against these shares to try and sell the shares at the strike price. Collect premium and buy the Call back when we see 90% of the profits. Selling Puts The trade initially started on September 3rd, so let’s backtrack a little bit to really dissect it step by step. TQQQ met all my criteria, and on September 3rd is when I first trading this. September 3th, when I started trading this, I sold 150 put for $0.66, which is $66 because I traded one contract, and one contract represents 100 shares. The next day I got assigned. I got assigned because when you’re selling puts it means that if the stock goes below the strike price at expiration, 150 in this case, I would get assigned. This is exactly what happened a day later when the option expired. So I made $66 by collecting premium, even though I got assigned 100 shares at $150/share, but here’s the deal. Since I sold the put for $0.66 this means that my cost basis, since I keep that premium regardless of whether I am assigned or not, gets lower. So this means that the $150 a share I paid minus the $0.66 I collected per share, brings my cost basis down to $149.34. Now doesn’t sound a lot, but it basically means that the stock now does not have to go above $150 anymore. As soon as TQQQ goes up to $149.34 I’m breaking even. Now if it goes above this, I’m making money. Simple right? Selling Covered Calls Now that we have been assigned, this is where we start selling Covered Calls. When you sell Covered Calls against these shares, the goal is to try and sell them at that strike price of that Call, while collecting more premium. Here’s the trade that I did. I sold a 155 Call for $2.10 on the 10th after realizing 90% of the profits, I bought it back for $0.37 the next day. So $2.10 minus $0.37 means I made $173. And now my cost basis gets reduced by another $1.73. Well, now our cost basis is going lower. Our cost basis of $149.34 drops by $1.73, so our new cost basis is now $147.61. This means that if the stock goes back to $147.61 we break even, and if it goes above we are making money. Easy right? Next, I sold the September 80 Call, the September 18 150 Call, for $0.45, then bought it back for $0.05. So this means at this point we made another $40, bringing our cost basis down by another $0.40 to $147.21. The stock kept going against us. It was going down and this is what many of you are concerned about. “What do I do if the stock keeps going down?” Well, you keep selling premium, and by doing so, you’re lowering the cost basis. Well, what I did next was really cool. Selling More Puts? So next, I sold actually two puts for $110 and $118. So that averages out to $114. Then I bought them back at $0.06. This means $114 minus $0.06. So we made another $108 here. Now I’ll explain in a moment why I sold a put here even though right now since we own stocks, and we should be selling calls. There’s a very specific reason for it, and I’ll explain it to you. Looking back at our trade, we are lowering our cost basis to $146.13. Next, after we sold the puts and they expired worthless I actually sold another 100 put for $2.40 and bought it back for $24. So we made another $216 here. Bringing our cost basis down again from $146.13 minus $2.16 to now $143.97. When To Sell Puts INSTEAD Of Calls So if you are supposed to sell Covered Calls during this stage of The Wheel Strategy, why did I sell those Puts? I already owned 100 shares of TQQQ that were assigned to me, so why risk getting assigned more? Well, I sold these Puts, instead of Calls for a specific reason. At this stage of The Wheel Strategy is where you normally would sell Calls, however, if you are on this part of this strategy, and the market is tanking, you have to make an adjustment to this strategy if the price keeps dropping, to help keep your cost basis as low as possible. These were 100 Puts, meaning if the price would have dropped below $100 at expiration for either of them, and I would have been assigned the shares. If that were to happen, I would now own 100 shares at $100 each, on top of the 100 shares I already own at $150 each. So now I own 200 shares, I paid a total of $250 for, bringing the average price per share to $125. Getting assigned these shares would have lowered my cost basis tremendously. If you subtract the total Premium I received on all of these trades, which was $12.05 a share ($1,205 overall) from the average price per share, which in this case is now $125, this comes to a cost basis of $112.95. This is what the cost basis would have been IF I was assigned these additional 100 shares at $100 each. I wasn’t assigned these shares, however, and my final cost basis was $137.95. Do you see why getting assigned is a good thing? People are afraid of getting assigned, but as long as you have adequate buying power, and are following my methods for picking good stocks, assignment should be looked at as a good thing. Selling Premium You see, this is what the Wheel does. You can sell premium while you own the stocks. So I then sold a $150 call for $1.57, bought it back at 15. So this means that I made another $142 bringing down my cost basis again to $142.55. Now, I don’t want to bore you and make this article too long here, but long story short, as you can see, I sold a few more of the calls and I bought them back. So overall, by just selling premium, even though I still owned the stock, I was continuing to lower my cost basis. At this point, the stock was down $2,770. However, by doing this, by selling more calls and puts here, I was able to make $1,748 in premium. So this means I made $17.48 per share on these 100 shares. So if you take the $150 minus $17.48 right now, right now my cost basis to break even on this trade is $132.52. So as soon as TQQQ goes back to $132. Now, what happens if TQQQ keeps going down? I will keep doing what I’ve been doing, following The Wheel Strategy. I’ll keep collecting premium until at some point, I can sell these shares for a profit. Recap So now you know what to do when you get assigned with a Wheel trade, and hopefully, it becomes less scary for you. I look forward to getting assigned with a Wheel trade because that allows me to sell calls and make even more money. If the stock keeps going down, I’ll just keep selling, and I will continue to lower my break even more and more. So, right now, TQQQ does no longer have to go all the way up to 150. It only needs to go up to $132.52. I just wanted to address this process because I know that many people who are trading this strategy are concerned saying, "Oh my gosh, what if I get assigned with a Wheel trade?” It’s a good thing. It’s a good thing and now you know why. Educationby rockwelltrading117
TQQQ retracement target around 156, wave 3 target 175Copyright Rohan Karunaratne 2020Longby UnknownUnicorn4017959774
TQQQ Life Has Been a Logarithmic LineIt seems like quite a coincidence that NASDAQ:TQQQ has been so linear on a logarithmic scale. You'd expect more randomness. Why is it so straight? Is this a result of some fundamental underlying economic laws? Or is the Federal Reverse using its powers to maintain a very specific level of long term economic growth?Longby mikepsinn221
TQQQ nice continued push to confirm wave 3 target at 175Copyright Rohan Karunaratne 2020Longby UnknownUnicorn40179593
TQQQ target 172 for wave 3 Continued push today, but as long as we stay under 160, we could still have our 128 drop. Copyright Rohan Karunaratne 2020Longby UnknownUnicorn40179597
TQQQ extended flat, still waiting on confirmation of directionCopyright Rohan Karunaratne 2020Shortby UnknownUnicorn40179591
TQQQ, The beginning of something good?Will price break higher from this consolidation? Got me, although I do have a position with a tight stop. Traditionally this is a bullish time of the year. We will see. Longby SwanFrench1
TQQQ target still 128Same as QQQ chart, if you want to trade this, short at top of trend channel with stop at the high, and get long at the bottom with a stop under the lows. Still waiting on more action. Copyright Rohan Karunaratne 2020by UnknownUnicorn4017959332
TQQQ slightly adjusted levels, support to break at 140Same verdict as the Qs chart, we need to take out the lower supports at 142, and 140 (Volume distribution support) in order to continue wave 3. Copyright Rohan Karunaratne 2020Shortby UnknownUnicorn40179591
TQQQ almost completed wave 2, still awaiting wave 3 target 133Copyright Rohan Karunaratne 2020Shortby UnknownUnicorn4017959Updated 223