The QQQ 0.00%↑ failed at its year to date VWAP yesterday, and gapped down this morning on the back of the META 0.00%↑ post earnings sell-off. MSFT 0.00%↑ , AAPL 0.00%↑ and GOOGL 0.00%↑ are on tap for earnings.
One way I mitigate my single stock exposure is by tactically shorting the indices via spreads. I can’t be constructive on the QQQ 0.00%↑ over short timeframes with price below YTD AVWAP, so I will tactically write spreads against that level and the highs to mitigate the portfolio during the current correction we are in. This provides some short-term hedging during what I’m observing to be a correction within a longer term uptrend. As the facts on the ground change, so to will the style of trades I am making.
