Rydex. Rydex. Trading System. Rydex funds. Fund Trading. Options Trading. NASDAQ 100. QQQQ |
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Index
Funds Trading |
Rydex
Funds & ProFunds
tracking NASDAQ 100,
S&P 500 and DOW indexes |
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Disclaimer
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QQQQ, SPDRs and
DIA Trading Systems to trade the Rydex Velocity 100, the
Rydex Venture 100, the Rydex Titan 500, the Rydex
Tempest 500, UltraBull ProFund, UltraBear ProFund, Ultra
OTC ProFund, Ultra DOW ProFund and other Rydex and ProFund bullish and
bearish funds.
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NASDAQ-100 Index Options
The
NASDAQ-100 Index was launched in January 1985
and comprises the largest non-financial companies listed on the
NASDAQ
stock market. Most of the 100 issues are well known companies, such as
Microsoft, Qualcomm, Intel, and Cisco Systems.
NASDAQ-100 Index Options were first traded on the
Chicago Board Options Exchange (CBOE) in February 1994.
Since the stocks represented in the NASDAQ-100 Index can
be very volatile, the prices of NASDAQ-100 Index options can also vary
significantly.
There are several ways you can
invest in the NASDAQ-100 index:
- By purchasing contracts of NASDAQ-100 Index
Options (NDX). Since each options contract controls 100 shares, you
could leverage $150,000 of equity (assuming a NASDAQ-100 Index price of
$1,500) with a single NDX contract;
- By buying mini-NDX index options (MNX). The
price of a MNX option is calculated as 1/10
of the value of the NASDAQ-100 Index. Assuming a mini-NDX
contract costs $1,500, you could control $15,000 of equity (a multiplier
of 100) with a single MNX contract;
- You can trade the
NASDAQ-100 Tracking Stock (QQQQ).
The value of one QQQQ share generally approximates
1/40 of the current value of the NASDAQ-100
index. For example, if the current price of the NDX is $1,500, the
QQQQ price would be approximately $37.50 per share;
- You can invest in options on the NASDAQ-100 Index
Tracking Stock (QQQQ options). If a QQQQ trades at $37 per share, one
option contract would control $3,700 of equity (a multiplier of 100).
QQQQ Options are the most liquid
option currently traded on the market. We recommend them as a
relatively low risk way of leveraging a part of your trading capital.
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