Learning How To Do QQQ Options Trading

Learning-how to-do-QQQ-Options-Trading

Table of Contents

The Exchange Traded Fund (ETF) that keeps track of the 100 NASDAQ Stock Index is referred to as Invesco QQQ. In short, QQQ strives to mimic how the NASDAQ-100 Stock Index is performing. SPY and QQQ are one of the most popular exchange trading funds and the number two highly traded ETF.

Find out which ETFs are best for daily trading and how they work.

Some of the main features of QQQ include:

  • Invesco’s current QQQ dividend yield is 0.60% (on the 2nd of Oct., 2020).
  • 0.20% cost ratio
  • The average daily trading volume for QQQ is 5,860,000 USD.

Given that the NASDAQ 100 includes 100 of the world’s biggest firms, QQQ provides equity investors with the opportunity to access large companies.


From the above table, you will notice that the information and communications technology sector accounts for about seventy percent of the entire quota. Naturally, QQQ’s main holdings include Microsoft Corporation, Facebook, Amazon, Apple, and Alphabet.

Below are some interesting facts about QQQ investment:

If you invested $10,000 in QQQ between 2010 and last month in 2019, you will have 51,465 USD in December 2019.

You can view how the 10,000 USD investments in QQQ have grown in the table below.

You can view how the 10000 USD investments in QQQ have grown in the table below

QQQ is clearly showed underperformance because of the coronavirus crisis of 2020. Nonetheless,  the present market situations may generate great buying opportunities for QQQ.

Thus, when we consider what the $10,000 invested QQQ will appear like after the COVID-19 issues, we will observe that the worth of the same invested QQQ will be $64,210  following the information collected on the 30th of June, 2020.

of same invested QQQ will be 64210

Let’s now look at the benefits of trading QQQ options.

Reasons for trading QQQ ETF options

There are merits and demerits to QQQ trading, but the advantages outweigh the disadvantages.

Primarily, QQQ options trading is among the most popular ETFs. When the trading is high, it results in increased liquidity and creates plenty of chances for making positive gains.

The QQQ Fund possesses a vibrant market for options trading strategies with lots of covers and hits for calls and futures. This gives a QQQ options trader a great trading opportunity because it gives you the chance to utilize multiple QQQ trading techniques.

Making a QQQ ETFs trade (Exchange Traded Funds) as an option offers the following benefits:

  • Generally low transaction fees.
  • QQQ ETFs are part of the listings on the stock exchange similar to stocks.
  • No hidden fees
  • Tax efficiency.
  • Suitable for short-term trades and swing trades.

Please consider all these benefits before you start using the QQQ trading system.

Using the QQQ options trading system

Below are factors you need to consider while trading QQQ Options Trading put and call options:

  • Choose the hit price using an outstanding commitment of 1000 or more.
  • Select weekly or monthly validity period.
  • The option premium is over $0.35.
  • Purchase ITM in the money options.
  • Delta for QQQ options from 0.40 to 0.60 for each week’s options and delta options greater than 0.50 for each month’s options.

The buy/sell spread is smaller compare to the $0.06 for each week’s options and smaller compared to the $0.10 for each week’s options.

QQQ Swing Trading System

We will develop a step-by-step trading plan on what it means to trade with the use of the QQQ swing trading system. Then we have mentioned earlier in this article that there a lot of popular benefits of trading with a medium-term swing trading strategy.  If you are looking for a way to make a consistent return in the market, the swing trading strategy may one of your best ways to reach your goal.

However, the first thing you must do if you want to attain this goal is to build a good and functional trading plan. The QQQ Swings trading strategies work with reading key technical indicators and applying them to trades. Examples of these indicators include the following:

  • Average Directional Index (ADX) strategy
  • The Moving Average Convergence Divergence (MACD) indicator

The Average Directional Index (ADX) strategy and the Moving Average Convergence Divergence (MACD) indicator are two technical indicators that are not related to each other, but combining them can yield excellent benefits.

MACD indicator are two technical indicators

We made use of an open system for the development of stock charts from Tradingview.com. After that, we utilized the ADX indicator for measuring the strength of the QQQ trend while discounting which direction the trend is moving.  Then we equally added the MACD indicator into the chart to make the QQQ swing trading strategy complete, we add the MACD indicator to the chart.

ADX and MACD mostly work together. However, if both technical indicators switch, this signal could lead to explosive trading. However, it should be noted that these discrepancies are very subtle.

When MACD and ADX diverge, the QQQ price potential for a reverse trend occurs not less than 85% of the time.


From the ongoing, we have succeeded in demonstrating to you that the QQQ Options Trading system comes with promising and useful results. You can use the QQQ swing trading system to take advantage of bear and bull markets. Swing traders must trade their options monthly and receive one non-profit strike at least four weeks before the expiration date. The QQQ trading signal usually lasts 1 to 3 days.

Having said this, let’s quickly recap all we have learned about the QQQ trading strategy and steps you need to follow to make successful trades.

So, below are the rules to follow if you want to succeed with the trading strategy:

  • To purchase a currency option, find the convergence between ADX and MACD.
  • Find the difference between ADX and MACD to purchase futures options.
  • Also, make sure to use two instances of the ADX indicator to better identify trading signals for this option.

Hopefully, this article has further increased your knowledge about the QQQ Options trading strategy. Let’s know how you get on in the comment section.

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