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Options Trader
Basic Strategies for Big Profits in Any Market

Buy Put QQQ

March 5, 2024
Buy the Nasdaq ETF (QQQ) November 430 Puts (exp. 11/15/2024) for $22.50 or less.

For the past several months we have been without a true hedge and we have been adding bullish exposure to growth stocks. That has been the right move as stocks in our portfolio such as NTNX, PLTR, CELH, MRVL, TSM, HOOD, etc., have soared higher.

Today, the market is under pressure, and I want to add a hedge via the Nasdaq ETF (QQQ) that will protect some of our big winning positions for nine months, and through the election season.

To execute this trade you need to:
Buy to Open the QQQ November 430 Puts.

The most you can lose on this trade is the premium paid, or $2,250 per put purchased.

Please note, these puts are not a market call that the indexes are going to collapse. Instead, they are an insurance policy against our many winning bullish positions.

Finally, we are likely going to hold these puts for months, which means we won’t get too excited if they are up, or down, 10-30% today, tomorrow, or for some time. Instead, this is a back-pocket hedge.

Position (Original)
QQQ November 430 Put
Position Strategy
Buy Put
Opened Date
March 5, 2024
Expiration
November 15, 2024
Net Price
21.40
Strike
430
Jacob Mintz is a professional options trader and editor of Cabot Options Trader. Using his proprietary options scans, Jacob creates and manages positions in equities based on unusual option activity and risk/reward.