TQQQ Stock Recent News

Tech stocks aren't generally known for their income-producing capabilities. But one simple option strategy has the power to deliver.

The ProShares UltraPro QQQ ETF has generated a 14,330% total return since its 2010 inception. The fund uses leverage to invest in the Nasdaq, and that's been a winning combination for a long time.

Leveraged ETFs aim to deliver amplified returns by using debt and/or derivatives. But leverage will amplify losses as well as gains.

Leveraged ETFs carry an imperious reputation and many investors fear them. This isn't without good reason, but learning to hedge these instruments can help mitigate their risks. We consider three methods by which to take advantage of the leveraged power offered by TQQQ.

TQQQ is an ETF that aims to provide triple daily returns to the NASDAQ-100 Index through leveraged strategies. It is designed for short-term traders and may decouple from its triple daily objective with prolonged holding periods. Geopolitical tensions, inflation concerns, and changing consumer dynamics pose risks to TQQQ's performance in 2024.

The ProShares UltraPro QQQ ETF offers tech bulls a way to generate leveraged returns from the Nasdaq 100, but it can also be used as a vehicle to short. Shorting the TQQQ can be profitable during bear markets and even sideways markets due to the impact of beta slippage, but it comes with high volatility and risks.

The secular bull market for U.S. equities continues to show unrelenting buying, with all-time highs in sight. ProShares UltraPro QQQ ETF has seen success in providing targeted, leveraged exposure to big tech stocks. The TQQQ ETF is not for value investors and carries increased risk, but has the potential for high rewards in a bullish market.

The ProShares UltraPro QQQ (TQQQ) ETF has done well this year as American stocks jumped. The highly leveraged fund soared to a high of $46 in November, bringing the year-to-date gains to over 80%.

Consider selling/shorting the ProShares UltraPro QQQ ETF as a trading vehicle for overextended Big Tech names. My bearish view on Big Tech is based on high valuations in a slowing economic growth, elevated interest rate environment. The business earnings yield on investment to short-term Treasury rate spread suggests similarities to previous market peaks and recessions.

The ProShares UltraPro QQQ ETF has achieved impressive returns over the past 15 years, but investors may be overlooking potential risks. Historical data shows that leveraged ETFs can experience significant losses during market downturns, and negative returns can accumulate over time. Indicators suggest that a bubble may be forming in the Nasdaq-100 and that a recession could be on the horizon, making investing in TQQQ too risky.