Using QQQ signals to trade QQQ options.

Our QQQ trading signals were designed to satisfy the demands of  QQQ traders. These are generally traders who wish to make no more than 15 to 30 conservative trades per year (or an average of roughly 2-3 trades a month). Our QQQ signals easily satisfy this requirement.

We remind you that options trading is highly risky. Should you decide to trade options based on our QQQ signals, we recommend that you observe a few simple rules:

• A "Long" signal can be used to purchase call options. When we issue a "Long" signal, we expect the market move higher. Accordingly, if you follow our signals, you could buy QQQ shares or QQQ call options (calls);
• A "Short" signal can be used to buy put options. When we issue a "Short" signal, we anticipate that the market will decline. In such a situation, if you follow our signals, you may sell short QQQ shares or by purchasing QQQ put options (puts);
• A "Cash" signal indicates that we are closing out any open positions;
• Purchase options with at least 3 months left to expiration. Because our signals were developed for mid-term trading applications, we might remain in a position anywhere from one to 7 weeks. Purchasing options that expire within the current month or during the following month could therefore be very risky. Due to the rapid decay of their time value, options that are close to expiry can expire worthless, even before a signal is closed;
• Choose the right options strikes. For call options, we recommend selecting the highest strike price that is in the money at the time a trade is initiated. Conversely, for the put options, choose the lowest strike price that is in the money when the trade is opened;
• After a winning options trade, reinvest only the original trade principal, never the principal plus the profit! For instance, if you allocated $1000 to options trading and assuming a previous trade resulted in a $500 profit, we strongly advise against reinvesting the full $1500 into your next options trade. Instead, commit only the original $1000. In this way, should you experience a (total) loss due to an option expiring worthless, you would still have the $500 (i.e., your profit from the previous trade);
• Invest only a small portion of your assets into options - an amount that will fit your personal trading needs and risk tolerance. In our opinion, that amount should make up about 10% of your total portfolio value; it should never exceed 30%.