To follow up on last week’s setup, here’s a quick recap — and the new trade for the upcoming week.
✅ Recap: July 25 to Aug 1 Trade — Closed Early, Moderate Profit
Friday, August 1 opened with a sharp bearish gap across the market — triggered by a combination of weak July jobs report and renewed tariff fears from the Trump administration.
This aggressive move in QQQ put pressure on the 548 short strike and threatened the breakeven zone of the spread.
Roughly one hour into the session, with no signs of stabilization and continued momentum to the downside, I decided to close the spread early — locking in a moderate but clean result.
P/L: +$171 (net after commissions, ~34% of max profit).
📊 Logged in Trade Log
🔗 View on OptionStrat
🔁 August 1 to August 8 Setup
With last week wrapped up, here’s the structure for Week #3 in the QQQ income cycle.
Opened: Friday, August 1, 2025
Instrument: QQQ (Invesco QQQ Trust)
Expiration: Friday, August 8, 2025
Sell: 530 PUT @ $0.81
Buy: 505 PUT @ $0.25
Net Credit: $0.56
Contracts: 10
Total Premium: $560
Max Risk: $24,440
Why This Trade Works
As long as QQQ stays above the 530 short strike by expiration, the spread will expire worthless — and I keep the full $560 premium.
If QQQ trades below 530 during the week, I’ll monitor closely and manage accordingly — with a possible early exit or transition into the recovery phase (LEAPS + covered calls).
Management Plan
Above 530? → Do nothing. Let it expire.
Approaching or below 530? → Close and initiate fallback plan.
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Disclaimer
All content is for informational purposes only and does not constitute financial advice.Any trades or strategies should be tested in a simulated environment before use.Trading involves risk, and all decisions are the sole responsibility of the reader.