One Way To Take Advantage of The Volatility In Tech Stocks

High Volatility, Technology Stocks, Volatility

Tech stocks have the started the new year with elevated volatility and quite a bit of selling pressure.  The most popular tech index, Invesco QQQ Trust (QQQ), is down 5% for the year and has seen a handful of large percentage moves already.  One strategist is looking to take advantage of the volatility by using covered calls.  By selling 10,000 February calls against 1 million shares of QQQ, the trader is likely trying to capture the high premium in QQQ options without taking on an unreasonable amount of risk.