A stock symbol, also called ticker symbol, is a particular set of letters assigned to a security for trading reasons. Stocks that are listed on the NYSE are limited to four letters or less. Securities that are listed on Nasdaq typically have four characters, but may have up to five letters. The fifth letter of a five-letter symbol contains company information. The fifth letter can sometimes be used to identify the type of stock or security: A or B stand for NASDAQ stocks' A and B class shares, respectively, while V or Y denote shares represented by American Depository Receipts (ADRs). There is no discernible difference between symbols with two letters, and those with three, four or even five letters because they are simply a shortcut for describing a company's stock.
This week we are going in with the Vertical option strategy on QQQ (Nasdaq ETF). The reason for choosing this option trade is that we are learning to choose a direction and how to trade that choice. QQQ has been on a crash course recently to the downside. As contrarians, we will bet the stock stops and heads up from here over the next 45 days and use a Short Put Vertical to trade that assumption. Watch this video to get the trade details. Hope you enjoy it! Kal Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability