I received an email asking why I bought calls instead of QQQQ or QLD (double long Qs). The answer is risk management. The market is in a clear downtrend on just about every timeframe you look at, so the odds are not in my favor. If the market weakens further from here I know that my risk is absolutely defined by the premium I paid, not a penny more. My thinking is that if the Nasdaq can turn, there could be a rally that may last a couple of days but I am not comfortable with the risks of holding stocks overnight in this environment. I am comfortable with the calls, that is my personal preference. The key is risk management…always!