Options Traders Love These 2 Popular ETFs
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ETF Trade Watch
Today, we are going to keep things simple and look at two of the most commonly traded ETFs in the game. There favorites for two reasons, their excellent, broad-based weathervanes for the market, and they have great liquidity, so there is always someone to buy or sell your contract to you. Those ETFs are below.
SPDR S&P 500 ETF Trust (SPY)
SPY is the S&P 500 ETF. which basically tracks the performance of the S&P 500 and all the stock included in it. This is basically how we get a bird’s eye view of a large swath of the market. SPY holds most of the top individual stocks to trade, stocks like, Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN).
You can use these names to see where this ETF may be headed too. If those names are all starting the day red, you can bet SPY will also open in the red. This is an ETF many beginning traders trade in order to keep things simple while they learn to trade.
Invesco QQQ Trust Series I (QQQ)
This is another very popular ETF to trade for all kinds of trades, from beginners to experts. This ETF is much like SPY in that it holds many of the same names, however, this is more of a tech focused ETF.
As you can see in the video below, the tech sector has been a top sector, in terms of performance, for the past couple weeks now. This is another good way for a beginner to trade an ETF and learn it well, as many stocks and ETFs have their own behavior.
Mastering trading either of these ETFs can have a profound effect on your trading, so it is highly recommended all traders are familiar with these two ETFs.
Join me in my Smart Trades options trading service where I teach my students how I trade options on some of the largest ETFs on the exchange. As you learn, you’ll get exclusive access to all my trades with notifications any time one is put on. Now, you can earn while you learn a high-income skill many use to achieve financial freedom. Join today!
I look forward to trading with you, but until then, as always…
