Option Trading Strategy – Buy QQQ Sell SPY

This month’s strategy is buying quarterly QQQ calls and selling quarterly SPY calls.  You can follow the link to see how this strategy has played out historically.

The idea behind this strategy is that the NASDAQ and SP500 tend to move together, but QQQ is more volatile and makes bigger moves.  Selling SPY partially offsets the cost of buying QQQ when the market is down, and QQQ outperforms SPY when the market is up.  At least that’s the theory, you can see how that compares to reality.

I appreciate all the emails I receive to discuss stock (/ option) trading, so if there’s anything you’re interested in please send me an email:

joseph AT StockMarketMovement.com