If these tech giants disappoint in their earnings outlook, that would be enough reason for this rally to fizzle out, and Nasdaq could finally see a pullback.
Here's a 6-month daily chart of the Invesco QQQ Trust (QQQ) ,which closely follows Nasdaq's price movement and can be used as a proxy to trade tech stocks.
You may find trading platforms using other names like "put debit spread" or "long put spread," but they all mean the same.
I did this because this trade is designed as a hedge against disappointing tech earnings, which are all happening this week, so I don't need a longer expiration date.
QQQ 6M mountain QQQ, 6 months Since this trade is taken as a hedge, the expectation should be that if the markets don't tank after tech earnings, I will lose my initial investment.
Persons:
Nishant Pant
Organizations:
Big Tech, Microsoft, Apple, Meta, Nasdaq