πππA good options strategy when
$Invesco QQQ(QQQ)$ is experiencing a downturn is a Bear Put Spread. A Bear Put Spread is a popular and conservative strategy for a moderate decline in QQQ's price.
You simultaneously buy a put option at a higher strike price and sell a put option with the same expiration date but at a lower strike price.
The advantage is that your maximum loss is limited to the net premium paid to open the position and the maximum profit is capped at the difference between the strike prices minus the net premium paid. This defines your risk and reward upfront.
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