Buy to Close QQQ Puts

Buying to Close 10/7 $270 QQQ Puts for $0.14

Realized gain of $1.50

Realized cash return of 0.58%

With the market rally of the last two days, I had the opportunity to close my puts for a nice gain. Making 0.58% in a week on my otherwise idle cash is pretty amazing - and combined with rolling the prior puts, I made just over 1.0% in just over 4 weeks. Selling cash-secured puts can be a great way to generate return in a rallying or flat market.

But if the market drops, especially quickly, these puts can become horrible trades. The market could easily drop back down quickly, so I'll move back to cash and wait for the next opportunity.