Dow Jones Industrial Average (DJI)

[EquityTrader]

I agree...

Hey, wanted to get your opinion.

Hypothetically...let's say you have $1 Million QQQ stock. And, you wanted to only spend $20,000 to guarantee (basically, lost money) against a "catastrophic loss" i.e. a more than $200,000 loss...making a 1 time bet for the year or using the same strategy every month (to keep it going). If the stock only goes down 5% it is not going to get cashed in.

What do you think is the best option strategy to get there? Had this debate with a friend.

i.e. most cost effictive way to save your arse in the event of a greater than 20% loss. i.e. in the money, out of the money, puts, selling calls, married puts, etc. and, if you got the time use a real option pricing.

Right now QQQ $54.52