The technique of mixing inventory trades with QQQ choices, typically detailed in PDF sources, refers to utilizing the QQQ exchange-traded fund (ETF), which tracks the Nasdaq-100 index, and its corresponding choices contracts alongside particular person inventory positions. As an example, an investor would possibly maintain shares of Apple (AAPL) and concurrently buy put choices on the QQQ to hedge in opposition to potential market downturns that might negatively influence their AAPL holdings.
This method gives potential benefits, together with portfolio diversification and danger administration. Using QQQ choices can present a level of safety in opposition to broader market volatility affecting expertise shares, with out requiring the sale of particular person inventory holdings. Traditionally, institutional and complicated retail buyers have employed such methods to refine risk-adjusted returns and handle total portfolio publicity.
