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jamesdast

Looking to Buy QQQQ Stock at 26 or Lower (Writing Puts)

By jamesdast, in Options

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jamesdast    10

jamesdast
Posted

I am 23 years old and have bee watching the market for quite some time now. I believe that now would be the ideal time to invest in the market.

 

My Idea is this:

 

I want to purchase 100 shares of QQQQ stock at $26 per share.

 

I am thinking of selling (writing) a NOV put at 26 and do so continuesly month after month until put exercised .

 

I have the required capital to purchase 100 shares of QQQQ stock ($2,600.00), just in case.

 

My question is this; Hypothetically, lets say I sell NOV 26 put and the QQQQ stock drops to $24 a share.

 

1.)Can QQQQ Options get exercised before expiration?

 

2.)If the put gets exercised, will I buy QQQQ stock or is it cash settlement?

 

3.) What are the differences between writing index options (QQQQ, SPY, DIA, OEX, NDX) vs regular stock options?

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