I took a short at $372 using credit-calls. The thesis is that NASDAQ:QQQ has made lower highs creating high-resistance liquidity and has shown a propensity to cheese-knife down below prior swing-lows.
This is a bearish run.
There is a swing-low at $348 that is a possible bounce area; but I think that NASDAQ:QQQ intends to challenge the $372 zone anyway.
This zone is an old swing low that was taken out which makes it a high resistance area. Fading a rally to this price makes sense.
The thesis is valid if the price action toward $372 is indirect and drawn out. The thesis is less valid if price moves strongly toward $372.
The prior swing-high at $380 is much higher resistance and presents a great short opportunity that could open up if $372 becomes challenged.
For now selling premium on the short side at $372 makes sense.
If we reach $348 a buying opportunity may form.
Lastly - 27th SEP took out the 18th AUG Swing-low thus I think the market structure is still bearish which makes any swing-higher to be fadeable unless it starts to take out prior swing-highs.