How to Play the Powershares QQQ Trust Series 1 ETF

The video discusses recent market trends, focusing on stock behavior and volatility indicators like VIX and put-call ratio. It highlights unusual seasonal volatility patterns and suggests hedging strategies using QQQ and NASDAQ 100. The video also covers downside protection strategies and analyzes the tech sector's performance, emphasizing the importance of preparing for potential market shifts.

What is a key indicator that suggests the market might be getting top-heavy?

• High trading volumes

• High oil prices

• Low VIX levels

• Increased stock prices

Why is it important to prepare for volatility spikes even when they occur outside their normal seasonal ranges?

• Because they can happen unexpectedly and affect market stability

• Because they are predictable

• Because they can lead to increased stock prices

• Because they always occur in January

What is the main advantage of using NASDAQ 100 options for hedging?

• They guarantee profits

• They are less volatile than other options

• They provide a cheaper way to hedge against volatility

• They are more expensive than other options

What is the maximum loss one can incur with the described NASDAQ 100 options trade?

• $2.60

• $1.00

• $5.00

• $10.00

Why might tech stocks be the first to sell off in a market downturn?

• They have had a significant run-up

• They are less volatile

• They are considered safe investments

• They have low earnings growth