QQQ
Nasdaq-100 equity core
100%
Strategy 02
6% target stress testQQQ 6% Income Target
This experiment starts by investing $100,000 in QQQ, an ETF that follows many large technology companies. Each month it also sells one QQQ put option, collecting a payment called a premium in exchange for a promise to buy QQQ at a set price if it falls. The extra payment can lift returns in calm or rising markets, but the promise can create an additional loss in a sharp selloff. The 6% figure is a goal to test, not a promised return.
Educational stress test only, not investment advice or a promised 6% return. This is an equity-backed 30-delta short-put overlay, not a cash-secured IRA position. The closer strike can collect more premium but creates materially larger assignment and drawdown risk. Premiums are VIX-linked Black-Scholes estimates, not historical bid/ask quotes.
Current status
QQQ core with the next 25-session put overlay
The displayed candidate uses the latest completed VIX close as a volatility proxy. It does not place an order. August 27, 2026.
- Paper account
- $100,000
- QQQ close
- $721.11
- Candidate strike
- $705
- Overlay notional
- $70,500
- Estimated premium
- $602.63
Portfolio tool
Equity-overlay calculator
Enter a portfolio value to see the QQQ core, estimated shares, and how many one-contract overlays the study would size at one per $100,000. This is not a broker buying-power calculation.
QQQ
$100,000
138.68 Estimated shares
Candidate QQQ strike
$705
Overlay notional
$70,500
Estimated premium per share
$602.63
The study sizes one overlay contract per full $100,000 of equity capital.
A planning aid only. It does not determine margin, buying power, or IRA eligibility. Confirm all requirements with the broker before any real trade.
Historical record
30-delta monthly stress test
Each year is replayed independently from adjusted daily closes. The table records every modelled cycle and keeps the VIX-linked premium assumption and 6% target in plain sight.
Total model return
+23.51%
Ending value
$123,513
QQQ equity core
+17.89%
QQQ buy and hold
+17.89%
Gross premiums (included above)
$5,395
Assignments
1
2026 Cycle journal
| Cycle opened | Settlement | QQQ close | Strike | Premium proxy | Option result | Total portfolio | Outcome |
|---|---|---|---|---|---|---|---|
| Jan 2, 2026 | Feb 6, 2026 | $611.68 | $600 | $572.08 | $572 | $100,006 | Expired |
| Feb 6, 2026 | Mar 13, 2026 | $608.21 | $590 | $717.08 | $717 | $98,110 | Expired |
| Mar 13, 2026 | Apr 17, 2026 | $592.32 | $570 | $989.73 | $990 | $108,345 | Expired |
| Apr 17, 2026 | May 21, 2026 | $648.14 | $635 | $759.95 | $760 | $120,069 | Expired |
| May 21, 2026 | Jun 26, 2026 | $713.73 | $700 | $804.05 | $804 | $119,661 | Expired |
| Jun 26, 2026 | Jul 31, 2026 | $706.52 | $690 | $828.79 | $628 | $117,150 | Assigned |
| Jul 31, 2026 | Aug 27, 2026 | $687.99 | $675 | $723.67 | $724 | $123,513 | Expired |
Historical adjusted-close data snapshot: Yahoo Finance chart API historical adjusted-close data. QQQ and VIX use adjusted closes. Options are a VIX-linked Black-Scholes proxy with cash-settled assignment at the cycle close, not historical option quotes, executable fills, or a broker margin model.
The model
Each calendar-year study starts with $100,000 fully invested in QQQ. It then adds one defined 30-delta QQQ put overlay every 25 trading sessions. The 6% figure is an income target to stress-test, not a forecast; the core remains exposed to rallies and the extra put loss stays visible in a drawdown.
PUT
One 30-delta QQQ put overlay
1 contract
RISK
Closer strike, larger drawdown risk
Added downside
Rules of record
Start fresh each year
Every calendar-year backtest begins with $100,000. Results do not compound from one year into the next.
Keep the core invested
Allocate 100% to QQQ at the beginning of every 25-trading-session cycle. There is no SHY cash reserve in this economic-exposure study.
Define one overlay
At each 25-trading-session cycle, sell one QQQ put selected near a -0.30 Black-Scholes delta, rounded to the nearest $5. The size is one contract per initial $100,000, not a broker margin rule.
Use a transparent premium proxy
Premium uses that date's VIX close as a volatility proxy, a 4% annual risk-free rate, and 25 trading days to settlement. It is not an option-chain reconstruction.
Accept the stress case
At settlement, the option result is premium less intrinsic value. The study cash-settles the result at the close, then resets to 100% QQQ. The closer strike makes assignment more likely.
Compare the whole trade-off
Show the strategy beside QQQ buy-and-hold. This makes the income target, premium collected, and added drawdown visible together.
What this does not prove
- A 25% volatility assumption can be far from the market's actual implied volatility.
- Cash settlement simplifies real assignment, share ownership, and possible covered-call decisions.
- One-contract sizing can create a very different exposure for smaller or larger accounts.
- This page does not model margin, buying power, spreads, commissions, taxes, liquidity, early assignment, or IRA permissions.
Update point: rerun scripts/generate-cash-secured-put-study.py after refreshing the underlying data snapshot.