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trading qqq and nasdaq etos

  1. andrewk4

    1,368 Posts.

    US markets have the ability to trade options on the indexes sp500 and nasdaq, just as we can trade etos on the xjo.
    Unfortunately, the price of index etos ATM can avge au$4,000 for a single contract (and thats for 100 shares , not 1,000!) leaving many aussies squeezed out by liquidity. Depends how rich you are.

    The qqq is a portfolio of the top 100 nasdaq companies, and its options are very affordable for anyone wanting to start out with usa etos.You can start with about au$500 per trade. TDwaterhouse have a US trading desk.

    Why trade qqq instead of xjo?
    Liquidity. Most strikes trade about 25,000 contracts per day, similar to any dowjones30 company.
    Prices are always fair. You can play longshots with rewards of 5 times your bet in a few days, or lose the lot overnight.
    Its also a lot easier to predict the PRIME MARKET, instead of asking "how much will xjo go down when US gets smashed or goes skyhigh?"
    XJO is not correlated very strongly with sp500 or the little black duck.
    Theres also a volatility index for qqq like the vix is to sp500.

    Let me know if you trade the qqq or sp500 index.

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