Trade History History: QQQQ Opt History: SPY Opt Simple to Use Trade Example Signal Example

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Our system generates signals for QQQQ and SPY options. In issuing signals for both trading vehicles, we apply the same technical indicators and use similar analysis methods; however, you should be aware of some of the differences and similarities between our QQQQ and SPY options signals:

Differences:

1. QQQQ options are more actively traded than SPY options. As a result, it is easier to open and close a position when trading QQQQ options;
2. Near-the-money QQQQ options are generally cheaper than SPY options (for the same expiration date);
3. NASDAQ 100 and QQQQ stock tend to be more volatile than the S&P 500 index and SPY stock;
4. Our system is geared toward the generation of conservative signals for SPY options (as opposed to QQQQ options). As a result:
   • In our system, a much stronger move is required to trigger a SPY options signal than to generate a QQQQ options signal;
   • We issue fewer SPY options signals per month than we do for QQQQ options. Whereas our system may generate up to five QQQQ options signals a month, it is very rare that you would see more than a single SPY options signal per month;
   • Our system tends to stay longer in SPY options trades than in QQQQ options trades;
   • Generally speaking, stop losses for SPY options are less forgiving (i.e., tighter) than for QQQQ options. For instance, while a QQQQ options signals stop-loss may be set as far as 50% away from the opening price, SPY options stop losses will rarely be more than 35% away from our trade entry price.

Similarities:

1. The same technical indicators and similar technical analysis approaches are used to generate signals for both the QQQQ and SPY options;
2. For both QQQQ and SPY, we issue signals for options with 2-3 months of time remaining until expiration;
3. At the moment a signal is issued, both QQQQ and SPY options are in-the-money.

Based on the comparison provided above, we consider QQQQ options trades to be more aggressive than those resulting from our SPY options signals. Depending on your personal risk tolerance, you can use different trading strategies. For instance, investing only in QQQQ options signals is a more aggressive approach than spreading an options portfolio between our two signals. Conversely, investing your money solely in SPY options would be considered the most conservative approach.

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