The strategy of combining stock trades with QQQ options, often detailed in PDF resources, refers to using the QQQ exchange-traded fund (ETF), which tracks the Nasdaq-100 index, and its corresponding options contracts alongside individual stock positions. For instance, an investor might hold shares of Apple (AAPL) and simultaneously purchase put options on the QQQ to hedge against potential market downturns that could negatively impact their AAPL holdings.
This approach offers potential advantages, including portfolio diversification and risk management. Utilizing QQQ options can provide a degree of protection against broader market volatility affecting technology stocks, without requiring the sale of individual stock holdings. Historically, institutional and sophisticated retail investors have employed such strategies to refine risk-adjusted returns and manage overall portfolio exposure.
