Why are the Q's so popular?

Discussion in 'Options' started by TinGull, Oct 18, 2007.

  1. TinGull

    TinGull

    Hi all,

    I've been trying to figure out why the QQQQ options are so popular? Is it because they're inexpensive (monetarily) and reallllly liquid? Or is it because of something else? I read somewhere online about it being "statistically predictable" but I have no idea what they mean by that.

    Just curious.

    Thanks!
     
  2. They're a hedge to a myriad of products and strategies. They spreads are razor thin there was a time when a lot of arb stuff was traded since they are a perfect ratio hedge for a number of other products too.
     
  3. Spreads of only 5 cents, and the Nasdaq 100 tends to be more volatile than the S&P or Dow Jones.
     
  4. I would say that in the past 6 months the DOW has been more volatile than the Nasdaq. If you are interested in options on the QQQQ's I would also look into DIA options, I think you will find them better.