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LivestreamMenuJune 2026 has been defined by a striking divergence in U.S. equity markets. While the Dow Jones Industrial Average marches to all-time record highs, the tech-heavy Nasdaq 100 (QQQ) has undergone a sharp, volatile and spastic repricing. I want to use the elevated volatility in the tech Nasdaq 100 ETF (QQQ) to create an income stream as I anticipate the profit taking and rotation out of tech to take a small break after Q2 comes to an end. Here’s a one-month chart of the three major indexes: The S & P 500 (SPY) has actually caught the brunt of the “rotation” damage. Interestingly, SPY logged 15 down days so far in June, the most of the three major benchmarks. Because the S & P 500 is market-cap weighted, the multi-day flushes in mega-caps like Microsoft , Nvidia and even in Apple actively broke its daily momentum, even on days when the broader market felt mixed. The Nasdaq 100 (QQQ) has had the most violently concentrated red days. While QQQ had 13 down days, its magnitude of losses on those specific days was significantly higher. On June 5, QQQ fell over 5% in a single session, and dropped another 3.9% on June 23. This Thursday was an extremely choppy session with a roughly 4% peak to trough range on the day. From its early-June peak near $748, the $QQQ flushed nearly 7% to a mid-month low of $693.69, and continues to trade in a choppy, defensive posture. This swift move lower is precisely why QQQ put option premiums are so elevated. QQQ hasn’t just had more down days than the Dow; the speed and velocity of those red days have forced market makers to price in significant risk premiums. The advantage for option sellers right now is the spike in Implied Volatility (IV). Because the Nasdaq’s pullback was swift and fueled by heavy single-day selling in concentrated semiconductor and mega-cap AI infrastructure names—the “fear premium” embedded in QQQ options has skyrocketed. The QQQ’s IV Rank is currently hovering north of 91%. This means that over the past 52 weeks, options have only been this expensive less than 10% of the time. The trade: Selling a put spread Sold the QQQ $690 7/17/2026 put for $14.00 Bought the QQQ $670 7/17/2026 put for $8.50 Selling this put spread allows an investor to collect $5.50. However, an investor risks $14.50 in the event QQQ’s close below $670 on 7/17/2026. QQQ was chopping around $706 when this trade was executed. DISCLOSURES: Kilburg owns this spread. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, or its parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.Read More
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