What’s going on guys today I want to make this quick video, I just noticed after opening up a credit spread earlier that the Nasdaq ETF $QQQ is now offering three expirations per week! The only other ETF that I know of that does this as well is the $SPY ETF which reflects the S&P 500 Index.
But really cool so if you click on the trade and go to the options tab this is on the Robinhood app you can see here that it’s now offered June 11th, June 14th & June 16th so that’s really cool so that just means that there’s more opportunities per week. So essentially you can now run Credit Spreads on this particular ETF three times a week
Obviously I don’t recommend doing same day spreads and holding your spreads to the expiration unless you are more of an advanced trader but it is nice now that there are multiple multiple dates per week because that just gives you more opportunity to take on more positions. As always I’m not telling you to go sell out credit spreads on the Nasdaq index right now, the market is has been pretty green this week so it might not be a great time to be selling puts. Be sure to know what you’re doing before entering spreads because spreads can be very dangerous anytime you sell options.
I just saw the other day on reddit or some other news site that someone had sold sold a naked call on $AMC and it turned out to be a terrible play. I think he ended up being down $600,000 or so. That’s just terrible man and I don’t wish that on anybody. Another prime example to know how to manage your positions before you ever take them on, know your risk! Don’t just jump on a platform and start trading. Learn options, understand that options can be very risky, know your risk & understand how to get in and out of trades. That’s why I always recommend to paper trade when you first get started that way you can learn how to get in and out of trades.
Robinhood doesn’t allow paper trading accounts but WeBull & Td Ameritrade does.
These different types of credit spreads and vertical spread option strategies are definitely a great tool and and strategy to know how to do. They may not be the best for you know and your current situation. But if used correctly and in the right market environment they can be a great way to create weekly & monthly income in a risk adjusted way. And another type of cash flow trading strategy.
Do your own research.
I just wanted to make this discussion to talk about the QQQ index options update.
There are a lot more opportunities now with it being three days a week should you do same-day expiration options I don’t recommend but just be sure to understand your risk. Because do keep in mind whenever you trade same day options the chances of assignment are much higher! The farther you go out the higher the premium so the chance of somebody exercising the option earlier is not as likely.
Do keep in mind the ex. dividend date of stocks/etfs as well.
You can inherit early assignment risks with those days too.
Questions? Comments? Concerns?
Let me know below 👇
Hope you guys enjoyed, take care!