economy

There's a big rotation out of tech happening. How to trade it as the second quarter ends

Jeff Kilburg of KKM Financial breaks down this options trade that creates an income stream during the market rotation.

There's a big rotation out of tech happening. How to trade it as the second quarter ends

TL;DR

  • The Nasdaq 100 (QQQ) has shown sharp volatility and significant losses in June 2026, while the Dow Jones Industrial Average reaches record highs.
  • The S&P 500 (SPY) has also been impacted by the rotation, experiencing numerous down days.
  • Elevated implied volatility (IV) in QQQ options, with an IV Rank above 91%, creates an opportunity for option sellers.
  • A specific trade involves selling a QQQ $690 7/17/2026 put and buying a QQQ $670 7/17/2026 put, collecting a net premium of $5.50.
  • This trade risks $14.50 if QQQ closes below $670 on 7/17/2026.

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