TQQQ: Bananas Are A Longer Hold
Summary
- TQQQ is triple levered ETF that correlates to the Nasdaq 100 Index.
- In volatile markets like this, TQQQ and options upon it can provide great setups for trades, as well as hedges upon core holdings.
- The cost of TQQQ's leverage creates daily drift that combines with the ETF's 0.95% expense ratio to make it best suited as an intraday or short-term trade.
- Due to the severe moves and effects of daily compounding, allocations into TQQQ require daily monitoring at the least.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of NDX, QYLD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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