Sell the Nasdaq-100 Trust Jun07 $43 (QQQFQ) Calls

In a post from about 3 weeks ago (Wed Feb 14, 2007) entitled “All Clear Ahead” I recommended going long the Nasdaq-100 Trust in the form the Jun07 $43 calls (QQQFQ) which could be had at the time for $3.10 apiece. 

Things have changed since then.  I’d take today’s up market as an opportunity to exit this trade.  Sell the calls for the current $1.90 a piece – a 38.7% loss.

I think it’s worth being a bit defensive until we get more clarity about the market’s short term direction.  I’m not saying it’s not going up from here.  I’m saying that downside risks are still in play with fear high and it’s best to play it safe for now.