I have only 400 usd in my account,Is there a cheap index option for me to buy? I can afford just 400 usd to buy a call index option.
Your post suggests both a lack of capital and a lack of options market knowledge, and your choices are best outside of options... • charitable contribution: 100% guaranteed, lends you a warm feeling, possible tax benefits. • taking the money in cash, and setting fire to it in the side yard: 100% guaranteed, lends you a warm feeling, possibly alerts neighbors to your mental state. • lottery ticket: 1|400,000,000 odds, lends you a warm feeling, might possibly pay off (though being struck by lightning is more likely...) If you were really glued to the idea of burning your capital away in an index option position, then rather than a simple purchase, I would recommend a "spread" where you would buy the position ("strike") closer to the current index price, and sell one further away -- thus enabling you to finance the trade either closer to the market, or further away in time. • My own choice would be to hold onto the money, and learn about options while gathering a bigger stake.
QQQ weekly options. Even in this very high volatility market you can still trade for $400. You are looking at about $3.00 OTM. But I recommend you wait til the volatility drops.