The Nasdaq-100 Index (NDX) calculated value is high to be traded competitively by many stock traders, its value is divided by 40 to represent the Nasdaq-100 Index Tracking Stock (QQQQ). QQQQ is therefore a stock that represents ownership of a long-term unit investment trust which is as good as holding a portfolio of the equity securities that comprise the Nasdaq-100 Index.
QQQQ is as good as a stock; it pays dividends and has options. Rather than having a portfolio of the 100 stocks that comprises the Nasdaq-100 index, you can instead have QQQQ and benefit from low fees, instant pricing and tax advantages among other attractions.
QQQQ as a stock has options which are just like any other equity options. 100 options of QQQQ make one contract. The minimum options that you can buy or sell are one contract – meaning QQQQ options have a 100 multiplier.
Trading the Nasdaq-100 Index
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