What is QQQ?

QQQ is an exchange traded fund that tracks the Nasdaq-100 index. It provides exposure to the 100 largest non-financial companies listed on the Nasdaq electronic stock exhcange.

It is heavily concentrated in technology and growth stocks, including the 'Magnificient Seven ', which are Nvidia, Apple, Microsoft, Amazon, Meta, Alphabet and Tesla. These seven stocks alone make up about 40% of the Q's.

What are Options?

Optons are a derivative of the underlying stock, in this case, QQQ, They are contracts, which allow the options holder the right but not the obligation to trade the underlying stock for a certain price by a certain date.

If you expect the stock to rise, you buy a 'call option'.

If you expect the stock to drop, you buy a 'put option'.

While simple enough, the price of these options are heavily influenced by implied volatility, which is a reflection of where traders expect the stock to go.

Options have an expiration date, at which point they simpliy vanish if you are 'out of the money' or converted to stock if you are 'in the money'.

Theta is the time component... options lose value, accelerated as they approach expiration.

Delta is the relationship between the option and the underlying stock. If, for example, a delta is .60, that means the option will move .60 if the stock moves $1.

Our aim is to buy first, then sell. We do not trade spreads or naked (selling options without the financial backing, should the stock turn on you... but this is another conversation.)

How to Trade Options

Options can be traded on any reputable platform. We use Schwab Think or Swim®.

The code for QQQ can by depicted in the symbol field as ".QQQ<expiration date><C for calls or P for puts><strike price>

For example, the $600 call opton expiring March 20, 2026 would be shown as QQQ260326C600.

It can be charted in the top left symbol field as the code but with a period in front.

How to trade our code sent to you:

Every mornign, you will be sent the curated option.

It may show up as "QQQ260327P661" That means, you will buy, wthin the first three minutes of the market open, the put option on the QQQ with the expiration date of March 27, 2026.

Upon purchase with a limit price, assuming the stock is headed in your direction (check the 1 minute chart), immediately put it up for sale with a 5% 'GTC' (good till canceled) sell order.

Let the market work its magic and come back later to collect your gains. If, by the end of the day, it has not sold, simpliy sell it for the market price at 4 pm, ET.

In the long run, this system works extremely well.