Price Breaks Provide Option Profits in $QQQ

In our TNT Options Trading Service on December 31st,  we talked about the PowerShares QQQ Trust ETF $QQQ.

After watching the trend and the NASDAQ-100 (NDX), we suggested simple targets for $QQQ if the NDX, the exchange-traded-fund which tracks the NDX, were to break its 6,330 flat-line, and how best to play the break in either direction which would incur in QQQ, as seen below:

The first upside target was 6,380, which the next day, the NDX managed to get to, and a little above! This provided the opportunity to either get out or roll at the first resistance flat-line, locking-in profits. The next day the NDX was slated to open below the 6,330 flat-line, presenting yet another opportunity for a trade, only this time, to the downside. On Friday the index managed to reverse its Thursday losses and once again handed nimble option traders upside potential above the 6,330 flat-line, all the way through the 6,410 level.

Some of our subscribers took advantage of the moves and were able to profit anywhere from 40% to as much as 120% by playing the flat-lines!

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