QQQ is now down more than 15% in 2025
It would take days to cover all the red ink on Wall Street since Thursday. Instead, we're going to paint with a broader brush and look at how President Trump's tariffs are impacting the tech exchange traded fund (ETF) Invesco QQQ Trust, Series 1 (QQQ).
QQQ -- which counts Apple (AAPL) and Nvidia (NVDA) as its two top holdings -- is down 3.4% to trade at $435.55, heading for its lowest close since early May. Thanks to yesterday's 5.3% drawdown that breached its 320-day moving average, the ETF is heading for its worst weekly performance since January 2022. Year-to-date, QQQ is 15.1% lower.
Options volume has been subdued in the last 10 days, with 45.7 million contracts changing hands just slightly below the average daily volume. While calls have been popular leading up to this week, the weekly 4/3 450-strike put that expires today has been growing in popularity. May 400 puts are also garnering notable attention.
Those purchasing short-term options are having to contend with relatively rich premiums. Short-term volatility expectations have ramped up, as evidenced by QQQ's 30-day at-the-money implied volatility (IV) of 36.6% -- in the 99th annual percentile. Plus, the 30-day IV skew of 32.2% also registers in the 99th percentile of its 12-month range, indicating meaning puts are currently pricing in higher volatility premiums relative to calls.