OptionsPlay Options Day .

Learning how to trade options takes time – but understanding which trading strategies are best suited for you helps make the process that much easier.

OptionsPlay Options Day

Welcome to OptionsPlay Options Day! Learning how to trade options takes time  – but understanding which trading strategies are best suited for you helps make the process that much easier. To help break down this barrier, Nasdaq has teamed up with Tony Zhang, Chief Strategist at OptionsPlay, to create a series of educational videos focusing on the Nasdaq-100 Index and options trading strategies surrounding NDX and NQX. Dive in to the 4 part video series below to explore the program highlights.

OptionsPlay Options Day: Key Benefits of Nasdaq-100 Index Options

Nasdaq Global Markets Reporter Jill Malandrino joins Tony Zhang and Nasdaq’s Tanya Patwa, Managing Director of U.S. Options, to kick things off and introduce the OptionsPlay Options Day video series, outlining what information can be gleaned from upcoming videos. Patwa begins by unpacking the Nasdaq-100 Index, along with its flagship product NDX and its new counterpart NQX. She and Zhang highlight the key benefits of the index options, with special emphasis on the AM- and PM-settled options, weekly options, and Wednesday listed options on NDX as well as the flexibility they provide to institutions, retail traders, and financial advisors. Zhang sets the stage for the additional series hits, explaining that the next three segments explore trading strategies, from basic concepts to best practices. Get ready to dive into index options strategies such as generating income using credit spreads, utilizing technical analysis, and hedging your portfolio. Get the full scoop here:

OptionsPlay Options Day: Top Strategies for Generating Income with Nasdaq-100 Index Options

Malandrino, Zhang and Nasdaq’s AVP of Product Development Dan Carrigan sit down at the Nasdaq MarketSite to explore the Nasdaq-100 Index and the products listed for options trading. Giving an overview of the standout performance index, Carrigan delves into its returns of 230% over the past 10 years, while also highlighting its two most popular options products, NDX and NQX. Zhang jumps in to break down credit spreads and describes why they are a good fit with NDX options. As a final recap, Carrigan outlines best practices for NDX options income strategies, highlighting the four pillars of options strategies, which focus equally on reward and risk:

  • Are you bullish or bearish?
  • What’s your target price?
  • What’s your timeline?
  • Is volatility expanding or contracting?

Interested in learning more about options strategies relating to the Nasdaq-100 Index? Get the full scoop here:

OptionsPlay Options Day: Technical Analysis Strategies Utilizing Nasdaq-100 Index Options

Malandrino, Zhang, and Efram Slen, Director of Product Development, Nasdaq Global Information Services, examine technical analysis and how it can be uniquely leveraged to drive effective options trading strategies. Slen begins by explaining that the Nasdaq-100 Index is best known for innovation and disruption, spanning industries such as technology, consumer services, and healthcare. While it is comprised of mainly large-cap and growth-oriented constituents, Slen points out that, interestingly enough, the bottom 50 names of the Nasdaq-100 Index are outperforming the top 50. Zhang then unpacks technical analysis, describing it as determining, “what is likely going to happen in the future based on past history.” Highlighting key benefits, he emphasizes an objective view on price, applicability to all instruments with a price, and applicability to all time frames. Further understand why options are particularly suited to technical analysis and watch the video here:

OptionsPlay Options Day: Hedging a Portfolio with Nasdaq-100 Index Options

Malandrino, Zhang, and Nasdaq’s Sean Feeney, Senior Managing Director of U.S. Options explore portfolio hedging and analyze the benefits of adding this strategy to your index options trading toolbox. Feeney recaps the strength of the Nasdaq-100 Index, highlighting that there are multiple ways to gain exposure to the index from both a retail and institutional perspective. Zhang dives into portfolio hedging, which consists of reducing portfolio exposure during a market correction to offset any risk. He emphasizes that while the strategy is straightforward, its execution is more difficult. Both highlight the key benefits of Nasdaq-100 Index options to further showcase that they are an effective product to hedge:

  • Cash settled options – reduce transaction costs
  • European style – no early assignment risk
  • Favorable tax treatment – 60/49 tax treatment
  • No corporate actions, gaps

After summarizing how you can best determine your strike and expiration, they outline best practices when putting on a hedge:

  • Better late than early
  • Sell covered calls to offset hedging costs
  • Index options cost efficiencies
  • “ITM” puts provide better protection

Explore hedging your portfolio with index options here:

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