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I know next to nothing about options and so I have a question. QQQ appears to an ETF with 'usual suspect' holdings[1] so what is it about QQQ that make it usefu
by glaucon 3y ago
I know next to nothing about options and so I have a question. QQQ appears to an ETF with 'usual suspect' holdings[1] so what is it about QQQ that make it useful for your purposes ?
From my limited understanding of options going long on QQQ would make sense if it tended to move in the reverse direction to BTC, and I assume that's what it does because otherwise you wouldn't be doing it, but can you explain why it does that ?
[1] https://finance.yahoo.com/quote/%5EQQQ/ https://finance.yahoo.com/quote/%5EQQQ/
- paulpauper 3y agoi don't know why the method works so well. maybe something to do with Coinbase sales from Slk Road asset forfeiture https://www.fxstreet.com/amp/cryptocurrencies/news/silk-road-bitcoins-worth-1-billion-move-to-coinbase-another-sell-off-on-the-horizon-202303080614 https://www.fxstreet.com/amp/cryptocurrencies/news/silk-road... it makes logical sense for the govt. to liquidate during market hours
- glaucon 3y agoSorry I didn't make myself clear. I understand that if there's a steady decline in BTC (perhaps due to Silk Road disposals) then going short on BTC would be beneficial but how does the other leg, going long on QQQ, protect you from the expected decline in BTC not happening during the course of the day ? Sorry if I've totally misunderstood what's going on ;-)