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.