Invesco QQQ Trust, Series 1 (QQQ) Covered Calls

The Invesco QQQ Trust is an exchange-traded fund that tracks the Nasdaq-100 Index, providing exposure to 100 of the largest non-financial companies listed on the Nasdaq Stock Market. Recently modernized from a unit investment trust to an open-ended fund structure, QQQ offers investors a liquid and transparent vehicle for accessing large-cap growth. It is heavily weighted toward the technology and consumer discretionary sectors, featuring many of the world's leading innovative companies.

You can sell covered calls on Invesco QQQ Trust, Series 1 to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for QQQ (prices last updated Fri 4:16 PM ET):

Invesco QQQ Trust, Series 1 (QQQ) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
608.81 +5.34 608.79 608.83 73.5M - 219
Covered Calls For Invesco QQQ Trust, Series 1 (QQQ)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Mar 20 609 15.18 593.65 2.6% 32.7%
Apr 17 609 21.38 587.45 3.6% 23.1%
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Core Business and Products

QQQ is a cornerstone of the global ETF market, designed to mirror the performance of the Nasdaq-100 Index. Following a 2025 structural modernization, the fund now operates with greater operational flexibility while maintaining its core investment objective. Its primary "products" are the underlying equities of the 100 largest non-financial Nasdaq-listed firms, categorized by:

  1. Information Technology: Significant weighting in semiconductor, software, and hardware giants like NVIDIA, Apple, and Microsoft.
  2. Consumer Discretionary: Exposure to major digital commerce and lifestyle brands, including Amazon, Tesla, and Netflix.
  3. Innovative Growth: Inclusion of biotechnology and healthcare pioneers such as Regeneron, alongside industrial innovators like Linde PLC.

Competitive Landscape

As one of the most liquid and widely traded ETFs in the world, QQQ competes with a range of growth-oriented and broad-market index funds. Its most direct internal competitor is Invesco Nasdaq 100 ETF, a lower-cost version of the same index tailored for long-term retail investors. In the broader growth segment, it faces competition from the Vanguard Growth ETF. While QQQ tracks a specific exchange-based index, it often overlaps in performance with S&P 500 trackers like the iShares Core S&P 500 ETF and the SPDR S&P 500 ETF Trust. Additionally, specialized technology funds managed by firms like BlackRock and State Street offer alternative thematic exposure to the sectors QQQ dominates.

Strategic Outlook and Innovation

The strategic focus for QQQ in 2026 is managing concentration risks as the "AI trade" matures into a period of broader market participation. Innovation in the fund’s underlying holdings is driven by record levels of research and development (R&D) spending, particularly in Agentic AI and Semiconductor efficiency. The fund management team is emphasizing the "digital tilt" of the portfolio as a buffer against potential global trade volatility and tariffs, as software and digital services remain less susceptible to physical supply chain disruptions. Furthermore, the fund is positioned as a primary vehicle for Thematic Resilience, where autonomous software agents and high-density compute power are expected to drive the next wave of corporate productivity. By maintaining a highly liquid, modernized structure, QQQ aims to remain the preferred benchmark for investors seeking to capture the growth of companies at the forefront of the global digital economy.