Archive for May 3rd, 2009
Powershares QQQ Trust QQQQ
May 3rd, 2009
The Powershares (QQQQ) investment is a unit investment trust designed to correspond generally to the performance, before fees and expenses, of the Nasdaq-100 index.
The fund holds all the stocks in the Nasdaq-100 index, which consists of the largest non-financial securities listed on the Nasdaq Stock Market. The fund issues and redeems shares of Nasdaq-100 Index Tracking Stock in multiples of 50,000 in exchange for the stocks in the Nasdaq-100 and cash.
The fund’s performance will therefore generally track the direction of the largest non financial components of the Nasdaq Stock Market. Options on the QQQQ are actively traded and in the money or near the money options will usually trade at a good volume and have a large open interest.
If you feel that you have a good idea as to the overall direction of the Nasdaq you may wish to consider trading the options. If you do be sure that you enter your options positions near or at the completion of a correction within a major trend or ideally at a trend reversal. Waiting for a a superior entry point is critical to trading options at a profit.
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