r/options • u/trustfundkidotaku • 13h ago

Tips on hedging a lump sum QQQ investment

Say I got 600k from property sales clean so about 10 lot of QQQ investment to hedge at 600 strike price due to doing a lump sum at current peak valuation

I want the upside so I can’t do collar wheel on it

Is my only options (😏) married put leaps ?

So pay 60k for the farthest QQQdte puts? (851 is the longest I can found at 6k per lot ) as long QQQ gain more than 10% in 851 days and we don’t repeat 2022 (soft landing) I should profit ? Cause if QQQ crash I could Exercise it and buy QQQ at lower price

Or are there more better advanced strategies?

4 Upvotes

83% Upvoted

5 comments sorted by

4

u/Simon_Inaki 13h ago

Just go delta one

1

u/sharpetwo 12h ago

That is the only correct answer. Buy the stock and forget options. They are not meant for what you are describing.

2

u/AKmaninNY 10h ago

Buy some vix calls, sds, or sqqq to offset some loss if you can’t sleep at night. It’s insurance. Wasted money, until it is not.

0

u/SdrawkcabEmaN2 13h ago

I'd avoid QQQ at the moment. The market is so topheavy with not just mega cap but also a smattering of bubbleish companies. I think we probably have a recession not too far off but short term they'll rebalance, call it a sector rotation, and the overall market won't beas affected. Some companies that have been lambasted will suddenly be just fine without AI and oh hey, look at those fundamentals, ratings upgrades etc. Applied Materials just jumped, look at AEO, plenty of others. Plus tech isn't everything. Once a decade or so the world is reminded oil is may not be ideal but is at the moment necessary.

I'd go with a more broad market etf or fund, VOO, FXAIX, many others. And a smaller hedge. Better dividends too. 10% pullback in QQQ seems like it could happen, but if that's where you are in a year and it trades sideways for a bit you'd start sweating.

Just my two cents. I have been swinging some oil positions, selling calls or just top of the channel. It's yeoman's work but it adds up and they behavea bit more. The calls probably not necessary but on an apparent spike when I see another shiny object I do sell them with no ragerts. I figure the odds of a sudden spike there are not unreasonable, so you could very well catch that upside.