DailyBubble News
DailyBubble News

Defiance Launches QQQT, the NASDAQ 100 Income Target ETF.

Defiance ETFs, a leading provider of options income exchange-traded funds, has recently launched QQQT, a new fund designed to achieve a target annual income of 20% in the NASDAQ 100 using options trading. The fund’s strategy focuses on holding ETFs tracking the NASDAQ 100’s performance while selling daily credit call spreads on the Index to maximize income potential while retaining upside growth opportunities for investors.

QQQT’s core strategy includes selling call options paired with the purchase of call options at higher strike prices to provide investors with an enhanced yield compared to traditional option-based strategies. The fund aims to generate consistent monthly income through option premiums derived from selling Index call spreads, with a specific target of achieving an annualized income level of 20%.

On a daily basis, QQQT actively sells credit call spreads on the NASDAQ 100, focusing on options with near-term expiration dates. This involves selling call options at or near the money strike prices while purchasing call options above that strike price to profit from further upside appreciation in the Index’s value.

Defiance ETFs, founded in 2018, is a leading ETF issuer dedicated to income and thematic investing. Their suite of leveraged & thematic ETFs allows investors to express targeted views on disruptive innovations, while their actively managed options ETFs seek high income with lower volatility.

Investing in QQQT involves risks, including the possibility of principal loss and trading at a premium or discount to NAV. The NASDAQ 100 Index, which the fund tracks, includes 100 of the largest non-financial companies listed on the NASDAQ Stock Market, with a focus on the technology sector and high-growth, high-valuation companies.

Overall, QQQT’s innovative approach to income generation through options trading offers investors a unique opportunity to participate in the potential upside of the NASDAQ 100 while aiming to receive attractive and consistent monthly income payouts.

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x