Trade Alert – (QQQ) June 11, 2025 – TAKE PROFITS – SELL

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

 

Trade Alert – (QQQ) – TAKE PROFITS 

SELL the Invesco QQQ Trust (QQQ) June 2025 $540-$550 in-the-money vertical bear put debit spread at $9.30 or best

 

Closing Trade

6-11-2025

expiration date: June 20, 2025

Portfolio weighting: 10% weighting

Number of Contracts = 13 contracts

We have just seen a substantial $7 sell-off in the (QQQ). It was clearly a “Sell the news” at the end of the China trade talks in London. Billed as a “win”, we actually gave up far more than we got, which was probably nothing.

TACO prevails again.

With only six trading days left until the June 20 option expiration, we are getting too close to the $540 strike price to continue with this trade. We have substantial profits to protect.

A big help with this trade was a massive decline in implied volatility, from $44 to only $17.

As a result, you get to take home =$780, or 6.82% in 23 trading days.

The (QQQ) has had an unbelievable straight-line move to the upside and is a few dollars short of hitting an all-time high.

Therefore, I am selling the Invesco QQQ Trust (QQQ) June 2025 $540-$550 in-the-money vertical bear put debit spread at $9.30 or best.

DO NOT USE MARKET ORDERS UNDER ANY CIRCUMSTANCES.

Simply enter your limit order, wait five minutes, and if you don’t get done, cancel your order and lower your offer by 5 cents with a second order.

If you don’t want to sit in front of a computer screen all day or live in a foreign time zone when the US stock market is closed, such as Australia, or don’t want to sit in front of a screen all day, simply enter a spread of Good-Until-Cancelled orders overnight, like  $9.30, $9.20, $9.10 and $9.00. You should get done on some or all of these.

The Invesco QQQ Trust (QQQ) is an exchange-traded fund (ETF) that tracks the performance of the NASDAQ 100 Index. It provides exposure to the 100 largest non-financial companies listed on the NASDAQ. The QQQ is passively managed, meaning it aims to replicate the index’s performance, keeping its expenses low. It has a huge market Capitalization of $83 billion, making it one of the largest traded ETF’s.

The top ten holdings of the Invesco QQQ Trust (QQQ) are:

Microsoft (MSFT)
Apple (AAPL)
Nvida (NVDA)
Amazon (AMZN)
Broadcom (AVGO)
Meta (META)
Netflix (NFLX)
Costco (COST)
Tesla (TSLA)
Alphabet (GOOGL)

To learn more about the Invesco QQQ Trust (QQQ) please click here to visit their website.

With this trade, I was willing to bet that (QQQ) shares would not rise above $540 by the June 20 option expiration in 29 trading days.

Here are the specific trades you need to exit this position:

Sell 13 June 2025 (QQQ) $550 puts at…………………….…$19.00

Buy to cover short 13 June 2025 (QQQ) $540 puts at…….$9.70

Net Proceeds:……………………….……….…………………………$9.30

Profit: $9.30 – $8.70 = $0.60

(13 X 100 X $0.60) =$780, or 6.82% in 23 trading days.

 

 

If you are uncertain on how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.