QQQ August Ratio Spread

Volatility is so low right now that it’s barely worth selling options. The NASDAQ Composite hit a record high again and I opted to sell a ratio spread on QQQ with the belief that QQQ will move slightly lower before expiration in August. If I’m wrong and QQQ climbs further, I still make a few bucks since I received a tiny credit for this ratio spread. If I’m right and QQQ ends exactly at $133 at expiration, I’ll gain more than $1,200.

While QQQ was trading at $138.26, I bought two QQQ August $139 puts and sold four QQQ August $133 puts to pay for the long puts. I received $8.33 after paying $3.67 in commission.

You can see my commentary here along with my QQQ chart – QQQ Ratio Spread

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