SpongeBob
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Monring mooers! It is Friday, May 24th, the eve of Memorial Day weekend here in the U.S. The tech sector is in the green, the market is climbing. My name is Kevin Travers, I am writing from the beach today: here are stories moving the market.
$Magnite (MGNI.US)$ climbed about 14% after a Bank of American Research upgrade to buy. The stock was the highest advancer on the S&P 500.
$Intuit (INTU.US)$ was the lowest decliner on t...
$Magnite (MGNI.US)$ climbed about 14% after a Bank of American Research upgrade to buy. The stock was the highest advancer on the S&P 500.
$Intuit (INTU.US)$ was the lowest decliner on t...
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Question 1:
We all know that TQQQ is a triple leveraged ETF of QQQ. So if you buy one share of TQQQ, how many shares of QQQ are you essentially buying? In other words, if you buy x shares of TQQQ and y shares of QQQ, what should the ratio of x to y be in order to achieve the same profit/loss?
If your answer is 3, then you have made a mistake. Understanding the leverage ratio is crucial for leveraged ETFs.
Currently, the price of QQQ is 426 and TQQQ is 56. The ratio of their percentage changes is three times, which means if QQQ goes up by 1%, TQQQ goes up by 3%. The actual price change is QQQ up 4.26 and TQQQ up 1.68. Calculating that 4.26/1.68 = 2.5, it means you need to buy 2.5 shares of TQQQ to catch the same price increase as 1 share of QQQ.
Question 2:
What is the capital utilization rate?
From the above question, it can be seen that in the case of the same profit, the ratio of shares between qqq and tqqq is 1:2.5, requiring an investment of 426:140 = 3. So everyone should realize that the triple leverage is based on funds rather than shares. At this point, the results are very intuitive, next we will discuss the issue of options.
The current month's options call side atm price for qqq:tqqq = 9.2:3.4 = 2.7. The result we obtained in question 1 is 2.5, which is very close, indicating that the share leverage ratio also exists for options.
How to choose:
1....
We all know that TQQQ is a triple leveraged ETF of QQQ. So if you buy one share of TQQQ, how many shares of QQQ are you essentially buying? In other words, if you buy x shares of TQQQ and y shares of QQQ, what should the ratio of x to y be in order to achieve the same profit/loss?
If your answer is 3, then you have made a mistake. Understanding the leverage ratio is crucial for leveraged ETFs.
Currently, the price of QQQ is 426 and TQQQ is 56. The ratio of their percentage changes is three times, which means if QQQ goes up by 1%, TQQQ goes up by 3%. The actual price change is QQQ up 4.26 and TQQQ up 1.68. Calculating that 4.26/1.68 = 2.5, it means you need to buy 2.5 shares of TQQQ to catch the same price increase as 1 share of QQQ.
Question 2:
What is the capital utilization rate?
From the above question, it can be seen that in the case of the same profit, the ratio of shares between qqq and tqqq is 1:2.5, requiring an investment of 426:140 = 3. So everyone should realize that the triple leverage is based on funds rather than shares. At this point, the results are very intuitive, next we will discuss the issue of options.
The current month's options call side atm price for qqq:tqqq = 9.2:3.4 = 2.7. The result we obtained in question 1 is 2.5, which is very close, indicating that the share leverage ratio also exists for options.
How to choose:
1....
Translated
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SpongeBob
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Hello everyone and welcome back to moomoo. I'm options explorer![]()
. In today's [Options ABC], we'll be taking a look at one important option Greek: Theta.
Wordcount: 1180
Target Audience: Investors interested in option Greeks.
Main Content: What is Theta? How does it work?
In previous articles, we highlighted the difference between stocks and options concerning internal value versus external value (time value). To refresh your memory, you can click on this l...
Wordcount: 1180
Target Audience: Investors interested in option Greeks.
Main Content: What is Theta? How does it work?
In previous articles, we highlighted the difference between stocks and options concerning internal value versus external value (time value). To refresh your memory, you can click on this l...
![[Options ABC] Theta: Secrets Behind Time](https://ussnsimg.moomoo.com/77777077/editor_image/7846dd29091a3ba4948c252f4a48d98f.png/thumb)
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SpongeBob
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$E-mini NASDAQ 100 Futures(DEC4) (NQmain.US)$ such acjoke Monday was a complete scam in a half everything all across the world was red so was everything in America but nasdeq up 4 dollars in 20 minutes of open my puts expired and then it tanks and tanks snd will continue till the moment I buy puts then it will rocket magically back up in 20 minutes like always this market needs a overhaul the thefts who control everything need to be kicked out of public markets for good and so does the sec exchan...
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SpongeBob
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When starting out in options trading, it can be tempting to use similar strategies from stock trading. However, this could potentially lead to significant losses.
In this article, we'll explore why options trading requires a different approach and discuss techniques that may be more appropriate to this style of trading.
Options are not stocks
The first and most important thing to understand about options is that they are not stocks....
In this article, we'll explore why options trading requires a different approach and discuss techniques that may be more appropriate to this style of trading.
Options are not stocks
The first and most important thing to understand about options is that they are not stocks....
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If we see confirmation of this candlestick pattern then it might get ugly.
$Invesco QQQ Trust (QQQ.US)$ $iShares Russell 2000 ETF (IWM.US)$ $VIX Index Futures(DEC4) (VXmain.US)$ $SPDR S&P 500 ETF (SPY.US)$ $SPDR Dow Jones Industrial Average Trust (DIA.US)$ $Gold Futures(DEC4) (GCmain.US)$ $E-mini Dow Futures(DEC4) (YMmain.US)$ $E-mini S&P 500 Futures(DEC4) (ESmain.US)$ $E-mini NASDAQ 100 Futures(DEC4) (NQmain.US)$ $E-mini S&P MidCap 400 Futures(DEC4) (EMDmain.US)$ $E-mini Russell 2000 Index Futures(DEC4) (RTYmain.US)$ $CBOE Volatility S&P 500 Index (.VIX.US)$ $VIX Index Futures(DEC4) (VXmain.US)$
$Invesco QQQ Trust (QQQ.US)$ $iShares Russell 2000 ETF (IWM.US)$ $VIX Index Futures(DEC4) (VXmain.US)$ $SPDR S&P 500 ETF (SPY.US)$ $SPDR Dow Jones Industrial Average Trust (DIA.US)$ $Gold Futures(DEC4) (GCmain.US)$ $E-mini Dow Futures(DEC4) (YMmain.US)$ $E-mini S&P 500 Futures(DEC4) (ESmain.US)$ $E-mini NASDAQ 100 Futures(DEC4) (NQmain.US)$ $E-mini S&P MidCap 400 Futures(DEC4) (EMDmain.US)$ $E-mini Russell 2000 Index Futures(DEC4) (RTYmain.US)$ $CBOE Volatility S&P 500 Index (.VIX.US)$ $VIX Index Futures(DEC4) (VXmain.US)$
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$Invesco QQQ Trust (QQQ.US)$ It’s tough. Yesterday it was dragged down by Apple, today it’s Tesla, and the curse of September’s downturn has come true.
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