Invesco QQQ Trust
It is great that you are saving so early. You will be in an amazing position in life if you can keep it up. A few things to consider: 1) SPY, VOO, and VTI are so closely correlated that they can pretty much be considered the same thing. They are something like 99% correlated. Pick the one with the lowest fees and combine them all into that, would be my reccomendation. No need to sell what you already have, just change future allocations. 2) AMZN and NVDA make up about 10% of the QQQ, so you may be inadvertantly over exposed to those companies with the amount you are putting into QQQ, AMZN, and NVDA. Again, great job and good luck to you!
Looks like QQQ and some tech saw some outflows with holders looking to lock in some profit but nothing out of the ordinary yet. SPY is holding and saw some minor inflows this previous week. Small caps saw some big outflows so some news might come here soon. Crypto has had the biggest inflows the past few weeks and made BTC push over 40k today, this week will be exciting concerning this asset class.
Shorting SQQQ - but not more than about 10% of your portfolio to avoid portfolio-busting margin calls - is a good idea. You gain both from the long term rise of QQQ and the volatility effect. A more conservative idea is shorting both SQQQ and TQQQ for about the same amount of money and periodically rebalancing according to your taste. You gain roughly 15% per year, more when the market tanks, with low volatility. If you want more risk and gain you can do it as 60% SQQQ and 40% TQQQ. Holding TQQQ makes sense only if you expect QQQ to go up more than 8%-9% a year, otherwise you lose money.
The fact you're advocating buy tiny amounts of shares of VOO and QQQ with $600 over buying $60$80 ITM contracts just proves that you have zero trading skills and probably don't even trade 0DTE. I have my own hedge fund bud and was simply illustrating the point that you don't need much capital to trade 0DTE and if you were to start with a small amount of capital, it actually makes way more sense to trade 0DTE over anything else. Investing with a small capital of $600 can be challenging when considering traditional diversified portfolios with ETFs like $VOO due to the high share prices. In such cases, trading 0 days to expiration (0 DTE) options on more affordable assets like $SPY or $QQQ may provide a way to scale the account more meaningfully. Options allow you to control larger positions with less capital upfront. Additionally it boils down to investor risk tolerance. If his goal is to grow his account faster. diversified ETF portfolio is a more passive strategy suitable for those prioritizing long-term investing and lower risk. He will do just fine cause I will train him for free. Just cause you messed up and didn't take more risk when you were younger doesn't mean he needs to repeat your awful mistakes
Since this is your first time investing, I'd say go 50% VTI 50% SNSXX (or another treasury money market fund). If the market (VTI) crashes, sell your money market fund and buy more VTI. If the market keeps crashing, sell your VTI to buy some QQQ (or MSFT). Statistically it's better to lump sum 100% into stocks, but doing it this way avoids the worst case scenario of you getting scared and cashing out after a 20% drop and missing the recovery.
First 0dte phenomenon audacity fed hike. Hike fed margin 4%. Government leverage ratio for protection program application for past present future of technology and then we just got implications is the best time 12% -415 on QQQ and GLD. Reverse ripo trade qaunt with Quantum leap forward to seeing SPX. Vix lower bond is average price for protection and stock price financial services. 88-1499 6% bond long. Short squeeze of quant. Alfa loss of beta reverse probably of liquidity ratio and probably won't prefer to liquidators and band algorithm. Though I know theta is average price of technically absolute value function. 2000-2026 Spy 0dte absolutely above floor price. Financial destibution of probability is above Fed fonds rate. Rather then implied volatility ETF price index fund. Metric system super system function. FX ETF stock short term bond long. Infrastructure 34% -69$ Euro natgas. Oil contango. + - SILVER.
What are you mostly trading? I started in forex but now usually only trade US30. Have always wanted to get into options with spy or QQQ but find that landscape confusing. I still use fx brokers so for me it’s instant transactions on MT4
Don't let the downvotes get you down. In the end the stock market is a weighing machine. Probably after our puts expire. My general thesis for why there is a serious recession in the works comes down to: the potential GDP of the US economy has lowered substantially in the last three years. 1) The reversal of globalism has reduced the benefits from trade substantially. Higher food food and energy costs as well as manufacturing costs. 2) Similar to 1 above but deserving its own bullet, de-dollarization is progress and is reducing the benefit the US used to have to export dollars and import debt. 3) Labor market has degraded significantly. Although improving, labor force participation is substantially lower than in 2019. It's also much lower than in 2009. Subjectively, the stock of human capital is also getting much worse as people retire and are replaced by a less competent workforce. 4) A growing portion of potential GDP is being consumed by unproductive government expenditures. When an economy is operating above its long-term potential, you get inflation, followed by a contraction. I am also bearish on equities for specifically monetary reasons, basically high valuations + QT + liquidity destruction by the Treasury's selling spree. Position: -70% on QQQ puts.
As mentioned by others in the thread: Tradable ETFs with multiple weekly DTE option expiries: GLD, IWM, SLV, SPY, TLT, QQQ, UNG, USO Non-Tradable Indices with multiple DTE option expiries: NDX, RUT, SPX, XSP Some of the indices such as RUT and IWM have expiries every other day (e.g., Monday, Wednesday, Friday) rather than every day as with indices such as SPY and QQQ. Additional Information: https://www.cboe.com/available\_weeklys/
I guess I’m not sure what happened. I’ve always been cash only, but hit a day trading limit once before on RH. Perhaps a glitch or something. I’m not too worried about it though. While I love watching everyone here lose money, I invest long term and pretty much in VOO, QQQ, and VUG.
It's concerning if you're bearish actually, garbage pumping is usually a sign of a bull run. Notice people talking about Newegg and Carvana again lol. But atm its purely to keep spy inflated while tech has a pullback. When QQQ was peaking I told a friend of mine a solid move is spy puts hedged with russel 2000 calls, because it's the leftovers to pump.
It's an interesting question for sure. I've been heavily overweight in a single position before (50%) and while it was very hard to make the change (there were a lot of tax implications to work through) I diversified that position and it's turned out to be the right move in hindsight. The company was a very old steady boring company along the lines of a Dividend King (what you would think of as a forever company) but it's had some hiccups since I made the decision to diversify so I actually dodged a significant drop and a lot of anxiety by diversifying. That said, Apple (and Big Tech in general) aren't in that old boring Dividend King mold. Trillion dollar tech companies are a different beast and I honestly have a hard time assessing future risk with them. They have tremendous stashes of cash to survive economic shenanigans and evolve themselves to stay on top for the foreseeable future. If I were you and I had a 50% position in a Big Tech like that I'd acknowledge it's too much risk to be that overweight in a single position and I'd start by selling off half to get down to 25% and use the proceeds to diversify (most likely back into tech but more diversified tech like QQQ). Then I'd reassess closer to retirement or based off AAPL performance whether I wanted to continue diversifying or ride or die with that big a position. This is based on an assumption the other 50% of your portfolio isn't Big Tech, btw. If you're 100% in Big Tech that would lean much more towards diversifying in case the sector cools off significantly by the time you want to retire. The next problem becomes how to divest efficiently.
How can the last 4-5 months be a bull-trap? When this whole year stock market has been rallying. Also, we had a major sell-off from August-Oct (which strongly suggest a bear-trap), given the recent rally we're seeing. With QQQ, and SPY hitting new 52-week highs.
If you're including ETFs I would say the obvious answer is broad market ETFs (e.g., SPY, VTI, QQQ, etc.). Holdings are modified *pro re nata* over time, so effectively they're always current. I guess technically SPY will end when 11 very specific millennials die.
LISTEN TO MY ADVICE ONLY. Focus on learning and trading options, you're already on the right path: anyone on here telling you to not do something to not try and trade options are telling you this because they're in capable of successfully trading options themselves. Those saying to hold and buy generic ETFs and create a "mix of stocks and bonds" aren't capable of actively managing a trading account and rely on generic JV/varsity advice. Stocks and bonds are positively correlated, so why would anyone hold a 60/40 portfolio? Makes zero sense, follow me take my advice add my SC👻smartm777 Trade zero days to expiration options on $SPY and $QQQ (0DTE) and master this. Someonebyour age should be taking more risks, not less of it. You don't even have a big enough account to even build a diversified portfolio that's worthwhile to hold and will actually net you a profit.
How does that make sense when the relationship between stocks and bonds is positively correlated ? Totally wrong, you want to trade options on $SPY AND $QQQ they're the most liquid markets in the world and will give you the best bang for your buck. You can't try to mix and diversify when you're trading with $600 that's laughable
More like anti-idiot Stan. Take a classic example of OP comment that has 500 upvotes. He says Cramer makes calls so that the buddies can unload. If so, when Cramer makes a call a stock should pop according to 1000s of idiots that upvoted similar comments. If so, why can't those idiots buy the stock and unload it themselves. So, either Cramer makes the stock goes up or he makes the stock goes down or he makes the stock goes up and immediately down or vice versa. Each of those can be traded and you can make money for yourself. in fact ETF's like SJIM, SARK, NANC are designed for gullible idiots who are anti-Cramer, anti-Cathie, anti-Nancy. Yet, all of those have lost money or not beaten QQQ. A non-idiot would take a step back and think "Hey wait-a-minute" may be WSB is full of actual regards. But here we are
Yeah I saw you being bullish and was like please be a sign of a top. But hey good for you for recognizing and profiting. i chose small caps because they have been weak relative to mag 7, SPY and QQQ so you can imagine my surprise today at the action Was driving all day so couldn’t manage Also I did look and the last week of Nov->first two weeks of December for ‘21 and ‘22 were red weeks. I still have time but damn, should have just bought calls 🤡
There is a misconception how this fund is run and that "someone explained this" picture guy has no idea what he is talking about. There is NO blowup risk like he suggested. Liquidation risk is when someone is selling NAKED puts. They clearly do not sell naked puts. They have cash and treasury collateral. For example QQQ at $400. They have $40,000. They sell only 1 put NOT NOT NOT NOT 100 or 200. So if circuit break happens and lets say QQQ tanks 10% to $360, they will lose only $4k. I am just simplifying and have not included premium savings, put strike sold etc but to simplify they CANNOT BE blown up in single day. Why would SEC even approve such ETF if that kind of risk was there for investors. What is true though is, in bear markets it will probably lose money. But people don't seem to get the idea that they have collateral needed and are only selling puts which collateral allows. Risk is only difference in strike price minus closing price.