Exposed! See how my traders are targeting DAILY income from the market!
The Nasdaq 100 (QQQ) is setting up for a major move, and I’m structuring a trade that gives me solid upside, downside protection and minimal risk.
The key here is positioning for volatility without taking on unnecessary exposure.
A smart options setup for QQQ
Right now, market makers are pricing in a $30 expected move by April 17 expiration for QQQ. That means the index could swing sharply in either direction over the next couple of months.
Instead of trying to guess which way it will go, I’m structuring a trade that gives me a favorable risk-reward setup no matter what happens.
The play: a combination of a bear put spread and a wide credit spread — these are simple vertical spreads.
- I’m buying the 535/530 bear put spread to capitalize on a downside move.
- I’m selling the 490/430 credit spread, which lets me collect premium while keeping risk defined.
This trade accomplishes a few things…
First, it gives me exposure to a potential drop in QQQ, which is important considering the high bar count and stretched valuations in the market.
Second, it allows me to take in premium while maintaining a manageable risk profile.
Third, if QQQ drops significantly, I’m willing to own shares at a lower price — around $490.
Balancing risk and reward
With this setup, my max risk is about $4.75 per contract. The max reward? Around $7.00 if the market cooperates.
If QQQ rallies, I still keep the premium from the credit spread. If it grinds sideways, I can manage the trade accordingly. And if we get a significant pullback, I have multiple ways to profit — whether it’s collecting the full spread or flipping shares for a bigger move later.
This is a cost-effective way to play what I expect to be a volatile stretch. I’m not just blindly shorting QQQ. I’m structuring a trade that keeps me in the game with the right mix of risk and reward.
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Exposed! How My Traders Are Targeting DAILY Income From the Market
With more volatility on the horizon, I’m revealing how regular traders like you could target daily income opportunities using this Wall Street secret…
(Based on a $1k stake)
And it’s not as complicated as you might expect.
The profits and performance shown are not typical. We make no future earnings claims, and you may lose money. The trades expressed are from historical back-tested data from June 2022 through April 2024 combined with Chris’s live money trading from June 2024 through December 15, 2024 to demonstrate the potential of the system. The average winning trade during the backtested data was 14.3% while the average losing position was 65.3% per trade and an 89.4% win rate.
