Trade of the Week: QQQ

Options Portfolio Manager – Investors Alley • Jan 4, 2021 at 10:55 AM EST

2020 was a huge year for tech stocks, but can it continue in 2021?

2020 was a huge year for tech stocks, but can it continue in 2021? At least one large trader feels like Invesco QQQ Trust (QQQ) has moderate bullish potential for the first 6 months of the year. QQQ, the Nasdaq-100, set record highs in 2021, but the popular ETF pays a miniscule dividend. The trader initiated a covered call position in QQQ that expires in June. It allows the index to climb as high as $350 before hitting a cap while still providing a 2% yield over a 6-month period

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