With tech stocks surging, QID has been punished this year, but some traders think the leveraged inverse ETF could bounce back.
“Investors are doubling down on bets against U.S. tech shares,” reports Bloomberg. “They’ve pushed the number of options to a one-year high for a leveraged exchange-traded fund that rises when the Nasdaq 100 Index falls, with more than five calls outstanding for each put. While that’s been a losing trade this year — the ETF is down 37 percent as the index tracking companies including Apple Inc. and Microsoft Corp. has surged to a record — investors have put money in the fund, sending the number of its shares outstanding to an all-time high.”
Year-to-date, investors have added $805.5 million to QQQ. Over the past month, the ETF has seen modest inflows of $5.6 million.
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Tom Lydon’s clients own shares of QQQ, Apple, Facebook and Microsoft.