One of the most popular ETFs for covered call writers is the QQQ ETF or the "NASDAQ- 100 Index Tracking Stock®. According to Invesco, QQQ “is an exchange-traded fund based on the Nasdaq-100 Index®.
The Fund will, under most circumstances, consist of all of stocks in the Index. The Index includes 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization.”
ETFs are well diversified and generally experience lower levels of implied volatility than individual stocks. However, because the Qs are based on high flying tech stocks, ...
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