Trade The QQQQ

The QQQ is an ETF (Exchange Traded Fund) which affords investors an opportunity to invest in the Nasdaq 100. The Nasdaq 100 is the top hundred stocks that trade on the Nasdaq Marketplace. The QQQ Exchange Traded Fund is essentially a mutual fund that tracks the stocks in the Nasdaq 100. A leading benefit of an Exchange Traded Fund (ETF) is that an ETF does not charge the management fees and all the additional fees commonly charged to mutual fund bearers.

The QQQ is the most actively dealt security in the United States. The symbol was lately altered to QQQQ therefore it would have 4 characters and trade on the Nasdaq rather than the NYSE. Although the symbol switched, it's nevertheless established upon the same thing. Mostly everyone still names it the QQQ, it just trades as the ticker symbol QQQQ.

Because the QQQ is handled the same way as a stock, you're now allowed to trade options on it also. Traders are currently earning a living trading call and put options on the QQQ. These were previously unavailable because the only means you were able to trade the Nasdaq 100 was with futures contracts. Few traders were familiar with the futures exchange, and consequently stayed distant from them. Because you're currently allowed to trade options on the QQQ, you are able to also apply whatever of the option trading strategies that were generally solely applied on stocks. A few of the more common option trading strategies are covered calls, ratio backspreads, bull put spreads, bear call spreads, iron condors, butterflies and any other strategies that require a combination of stocks and options.

Covered Calls are perhaps the most common option strategy to average investors. They are a process to return a monthly profit from stocks that you have. Here is a really elementary explanation of a covered call: You possess 100 shares of the QQQ. Option contracts are exclusively traded in 100 share increments. Because you possess 100 shares you are able to sell a contract to sell the QQQ to another trader at a assigned price in the future. You commonly sell the contract at a greater price than the stock is trading. If the stock does not proceed to go up, the trader will not purchase the stock from you, however you get to keep the profit that you received when you traded the contract.

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Sold DRYS Covered Calls

I decided to leg into the trade with only three covered calls for now. While DRYS was trading at $13.42 I sold three DRYS January 15 calls (OOCAC) for $0.80 each and received $227.75 after commissions. I sold out of the money in case ...

ETF Covered Calls - Dedicated to searching for optimum returns on ...

ETF Covered Calls website is for educational and entertainment purposes only. Any investment activity is not without risk including loss of principal. Neither this website nor its authors assume any responsibility arising from the use ...

The Business of Writing Covered Calls

Option writing is not as easy as it sounds; it requires some training in order to give you a better chance of succeeding. Options trader Ken Trester's guidelines will shows you how to maximize the flow of income from your covered option ...

The Option Premium Collector: Trade Idea: TBT ProShares Ultra ...

Consistent with my preferred method of trading I'm looking at selling out of the money puts or possibly writing covered calls on this issue. As of the time of this writing the just out of the money January puts and calls are paying a ...

Apple Covered Call Revisited: Same Share Price At $95, But I?m Up ...

On Oct. 26, 2008, I posted on the Apple Covered Call Options Play I entered into. At the time, Apple [[AAPL]] shares were trading at 94.6. Monday, they closed.

The Option Premium Collector: 10 Market Rules

The Premium Collector: Austin, TX, United States: I have been investing in the stock market since 1988 when I received my first real paycheck. Since 2005 my preferred form of stock investment is trading options by selling covered calls ...

CXOAG Investing Notes ? Testing A Simple Index Covered Calls Strategy

Does iteratively selling short-term, slightly out-of-the-money covered calls on a broad stock index position reliably outperform buying and holding the index? We can explore the answer to this question by applying assumptions about ...

Sold Covered Calls on CELG & FCX - Dumped AA, CHK, CMI

While CELG was trading at $53.33 I sold two CELG January 55 covered calls (LQHAK) for $2.20 each and received $428.50 after commissions. I think CELG will bounce back from it?s current price, but I?m not so sure that I don?t want to get ...

Covered Calls Advisor: Roll-Up -- Potash Corp of Sackatchewan Inc ...

The ?net debit to strike price difference ratio? was 70% [($11.35-$4.35)/($75-$65)]*100, which achieved the Covered Calls Advisor's desired threshold criteria which is to roll up only when this ratio is <75%. The decision to roll-up POT ...

Writing Covered calls again

I am willing to write calls below my cost basis at this point because I don't see the ETFs rising that high in the next 2 weeks. Once earnings start rolling, that's a different story. In general, demand for the ETFs is waaaaay down as ...

One Family's Blog: Ireland Trip Report

Both sets of ruins are about a mile apart and can be covered in about two hours ? the first group lies east of the Lower Lake and the other group has the buildings associated with St. Kevin dating back to the 6th century. ...

3 Covered Call Writing Tips for Passive Income

In a nutshell, covered call writing is simply selling the right for someone else to purchase stock that you currently own (100 shares per contract) at a certain price (called the strike price). If the stock closes above that strike ...

December 24, 2008 - Testing A Simple Index Covered Calls Strategy ...

December 24, 2008 - Testing A Simple Index Covered Calls ... - A rolling covered call strategy on a broad market index suppresses portfolio volatility, but its return performance is sensitive to trading frictions.

The Bull Hunters Guide » Blog Archive | Covered Calls With Collars

I wasn't going to post another article in the Bullhunter Blog until I got back home from Hong Kong. However, I put a post in the Planet Wealth Blog ab.

Covered Calls » Blog Archive » USO - Open Position

Months Held: 2. Expected Return: 7.47% 100 SSO Cost Basis: $26.44. Income: $0.60. Months Held: 2. Expected Return: 15.71%. Covered Calls is proudly powered by WordPress Entries (RSS) and Comments (RSS). Designed by Blog Oh Blog.

Covered Calls Advisor: Establish iShares MSCI South Korea ETF ...

Fortunately for us covered calls investors, this ETF has reasonably good liquidity in both the ETF itself but also in the call options. It is also well diversified across all sectors of the South Korean economy, with substantial ...

Hedging a Dividend Portfolio | The Dividend Guy Blog

Although I have never done any true hedging (other than covered calls) in my dividend growth portfolio, it has been a huge topic of discussion from many financial pundits as a way to help limit the downside with a sliding portfolio. ...

Stock and Option Trading Ideas: Get on Base with SPY Covered Calls

I've been thinking of a strategy for writing deep in-the-money covered calls on the S&P 500 ETF (SPY) that reminds me of the way David Eckstein approaches hitting. Here's the idea. Buy 100 shares of SPY at around $88 as the underlying ...

Why I closed my profitable Apple (AAPL) covered call trade_ ...

Today I bought back my Apple (AAPL) January $90 strike covered calls and then sold my Apple stock. After owning the stock and the covered call (buy write) position for 62 days, I made a 30% annualized return on a trade that I had hoped ...

Covered Calls Advisor: Microsoft Corp (MSFT) Continuation Transaction

The following transaction was made today to establish a covered calls position against the 500 shares owned in Microsoft Corp(MSFT): 12/23/08 Covered Calls Continuation Transaction -- STO 5 Jan09 $21.00 Calls @ $.36 ...