QQQ Short

Counter Trend Trade on QQQs. I am expecting the stock to take a breather and back test previous high. Looks like a 4 to 1 Risk to Reward ratio.

OPTION PLAY:

QQQ Aug 23 360 Put
2 Contracts Limit Buy $6.41



Thesis

• • Island Reversal
    
  • Possible Double Top formation.
    
  • Noticeable Negative Divergence on the building between price action and RSI.
    
  • Buy Volume is decreasing.
    
  • VIX at rock bottom support.
    
  • 3 Days of buyers instantly trapped by today's gap down.