June 2026 has seen a stark contrast in U.S. equity markets, highlighted by the Dow Jones Industrial Average achieving all-time highs, while the tech-focused Nasdaq 100 (QQQ) has experienced sharp volatility and significant price drops.
The S&P 500 (SPY) has been particularly affected by this rotation, logging 15 down days, the most among major indexes, largely due to declines in mega-cap stocks like Microsoft, Nvidia, and Apple. The Nasdaq 100 recorded 13 down days, with notable single-day losses, including a 5% drop on June 5 and a 3.9% decline on June 23.
As a result of this volatility, the implied volatility for QQQ options has surged, with an IV Rank above 91%, indicating that options are currently priced at a premium not seen in 90% of the past year.
An investment strategy discussed involves selling a put spread on QQQ, where an investor sold the QQQ $690 put for $14.00 and bought the $670 put for $8.50, allowing for a potential income of $5.50 while risking $14.50 if QQQ closes below $670 by July 17, 2026. This strategy takes advantage of the elevated option premiums resulting from the recent market dynamics