ETF - Index
QQQ
Invesco QQQ Trust
How to generate income from QQQ (Nasdaq-100) using covered calls and cash secured puts. Higher premium than SPY with tech exposure.
Monthly Premium1.0-2.0%
Annualized Return12-24%
Stock Price$510-540
IV RankLow-Moderate (20-40)
Options LiquidityExcellent
Dividend Yield0.5%
Why QQQ for Covered Calls & Cash Secured Puts?
QQQ offers higher premium than SPY due to tech-heavy composition and higher volatility. Still provides diversification across 100 stocks. Excellent liquidity with tight spreads.
Example Covered Call Trade
QQQCovered Call
Strike Price$540 (3% OTM)
Expiration30 days
Premium$7.20 per share
Return If Flat1.4% ($720)
Return If Called4.3% ($2,220)
Keep Probability70% keep shares
Recommended Strategy for QQQ
Sell calls 2-4% OTM monthly for enhanced income vs SPY. QQQ works well for tech bulls who want income while maintaining upside exposure.
Risks to Consider
- Tech sector concentration
- Higher volatility than SPY
- More expensive than SPY
- Growth stock sensitivity
Analyze QQQ Covered Calls Now
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