Market Turbulence Prompts for Solid Delta Neutral Base Like SQQQ

At times of market turbulence like now it makes sense to consider hedging investment portfolios or even apply Delta-neutral strategies. From the technical standpoint, some reverse market ETFs lately have become more and more appealing.

ProShares UltraPro Short QQQ (NASDAQ:SQQQ) provides three times inverse exposure to the daily performance of the Nasdaq-100 Index, charging 95 bps in annual fees. The index measures the performance of the 100 largest U.S. and international non-financial companies listed on The Nasdaq Stock Market based on market capitalization.

ProShares UltraPro Short QQQ has AUM of $2.7 billion and trades in an average daily volume of about 48.5 million shares.

ProShares UltraPro Short saw a significant drop in short interest during the month of January. As of January 31st, there was short interest totalling 4,390,000 shares, a drop of 15.4% from the January 15th total of 5,190,000 shares. Based on an average daily volume of 45,788,500 shares, the short-interest ratio is presently 0.1 days.

Hedge funds and other institutional investors have recently bought and sold shares of the company. Tudor Investment Corp Et Al acquired a new stake in shares of ProShares UltraPro Short QQQ in the second quarter valued at approximately $95,000. JPMorgan Chase & Co. raised its holdings in shares of ProShares UltraPro Short QQQ by 6.7% in the second quarter. JPMorgan Chase & Co. now owns 95,738 shares of the company's stock valued at $875,000 after purchasing an additional 6,035 shares during the last quarter. Cerity Partners LLC acquired a new stake in shares of ProShares UltraPro Short QQQ in the third quarter valued at approximately $362,000. Credit Suisse AG raised its holdings in shares of ProShares UltraPro Short QQQ by 30.3% in the second quarter.