One Way To Take Advantage of The Volatility In Tech Stocks

High Volatility, Technology Stocks, Volatility
by Jay Soloff
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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.

Author: Jay SoloffJay Soloff is the Options Portfolio Manager at Investors Alley. Jay is also the editor for 48-Hour Income, Options Insiders, and co-editor of Weekly Income Accelerator and POWR Income with Tim Plaehn. Prior to joining the online investment world, Jay was a floor trader and market maker on the CBOE, the world's largest options exchange. His experience includes trading a multi-million dollar options portfolio in equities options as well as serving as a consultant to Wall Street options trading groups. Jay also spent time as a senior analyst at a hedge fund of funds, where he analyzed professional options funds as well as traded option strategies for hedging purposes. All told, Jay has 20 years of options trading experience. He received his undergrad degree in Economics at the University of Illinois - Champaign, and his MBA and Master of Science in Information Management from Arizona State University.
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