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How Headwaters Volatility's CIO Is Trading the QQQ

How Headwaters Volatility's CIO Is Trading the QQQ

Assessment

Interactive Video

Business

University

Practice Problem

Hard

Created by

Wayground Content

FREE Resource

The video discusses the NASDAQ's significant downturn, marking its worst day since 2008. It explores the intersection of aggressive volatility selling post-election and opportunities in the tech sector, particularly through QQQ. A trade strategy is highlighted, focusing on being long volatility without directional exposure, benefiting from cheaper volatility and call structures. The strategy involves using 105% moneyness calls three months forward, offering a low-cost way to capitalize on market conditions.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the benefits of being long upside 100 and 5% moneyness calls in QQQ?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What factors contribute to a relatively low-cost way of being long volatility?

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