QQQ
$704.40
-$0.07 (-0.01%)
Last close · Oct 23, 4:00 PM ET
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QQQ Buy the Dip Calculator: Dry Powder Ladder
Scale a separate $200,000 into QQQ, with the largest buys at a −27.5% to −33% drop. The levels come from QQQ’s own bear markets since 1999.
IV Rank (1y) 68 — based on VXNVXN 28.30 (Nasdaq-100 implied vol, a proxy for QQQ). 1y low 17.20, high 33.54. IV percentile 88%. As of Oct 23, 2026. What is IV Rank?
Separate cash account · QQQ
The Dry Powder Trade
Market closedYour fills save in this browser
Step 1 · Your dry powder
Enter the cash you’ve set aside only for this plan, money you won’t need for bills or other trades. The ladder splits it across 10 buy levels.
Example: $200,000 — enter yours.
VIX
19.45
+0.42 (2.21%)
Reference only. Not a buy signal.
QQQ now $704.40, 7.66% below its 52-week high.
Example: if QQQ fell to $720.90 (−5.5%)
Example order
Buy 13 shares
$720.90 is through −5.5% and those rungs are still open. Place the limit orders. Do not add again if price only retests the same level.
- −5.5% · 13 shares · limit $720.90 · $10,000
- Combined order $10,000. Mark each rung filled after the trade prints.
This is an example at the first rung, not today’s price. Tap “Use today’s price” or type any price below.
The ladder
$0 deployed · $200,000 left
High−27.5%−55%
−5.5% Example
13 shares · limit $720.90 · $10,000
−11% Waiting
22 shares · limit $678.95 · $15,000
−16.5% Waiting
31 shares · limit $636.99 · $20,000
−22% Waiting
42 shares · limit $595.03 · $25,000
−27.5% Waiting
54 shares · limit $553.07 · $30,000
−33% Waiting
58 shares · limit $511.12 · $30,000
−38.5% Waiting
42 shares · limit $469.16 · $20,000
−44% Waiting
46 shares · limit $427.20 · $20,000
−49.5% Waiting
38 shares · limit $385.24 · $15,000
−55% Waiting
43 shares · limit $343.29 · $15,000
Plan
The Dry Powder Trade is to take advantage of the pullbacks. We always have at least 40% of our portfolio in cash (dry powder) and we scale in as QQQ falls in price. It’s buying the dip plus powerful income generation.
After we load our shares and QQQ stabilizes we will sell covered calls (1 for every 100 shares we own), collecting premium on the way up. We can also buy 1 leap call for every 100 shares of QQQ we own as soon as the price is trading above the 21 SMA. Once we establish a leap call position we can turn that position into a PMCC by selling a covered call on each leap we own.
Most QQQ bears stop around −33%, not −55%. Buys build into that level, $30,000 at −27.5% and $30,000 at −33%. If it goes no further, about two-thirds of the cash is already in. The rest stays back for a drop past −38.5%. One fill per level. Do not buy between levels. VIX is context, not a trigger.
Notes
- Separate cash account. QQQ only. Typically 40% of your account in dry powder. VIX is on the tape for context and is not a trigger.
- Anchor is the high you scale from, $762.86 until a new high replaces it. One fill per level. Do not buy between levels. A gap through several rungs is one combined order.
- The probable stop is −33%. The largest buys are $30,000 at −27.5% and $30,000 at −33%. About $130,000 is in if it stops there. $70,000 stays back through −55%. Nothing is reserved past −55%.
- QQQ bears since 1999: median depth about −32%. Only the 2000–02 dot-com bust (−83%) went past −55%. From the low, the median QQQ bear was back at its old high in about 8 months; after 2007–09 it took about 2 years, and after the dot-com bust about 14 years. The shares break even before QQQ regains its high.
How the QQQ ladder works
Start with Step 1: enter your dry powder, the cash you’ve set aside only for this plan. The calculator starts with an example $200,000; type your own amount and every level, dollar amount and share count updates at once. The app opens on an example price at the first rung so you can see how an order looks. Tap Use today’s price and it compares the live QQQ price with your anchor high, which starts at the 52-week high. When the price reaches a rung’s limit, it tells you to buy that rung’s shares; when it hasn’t, it says Do not buy and shows how far away the next rung is. Mark each rung filled after the trade prints, and that rung won’t come up again. The quote refreshes every minute in market hours, and you can type any price into Check a price to preview the plan there.
Default QQQ ladder ($200,000, anchor $762.86 = 52-week high)
| Rung | Drop from high | Limit price | Share of cash | Dollars | Shares |
|---|---|---|---|---|---|
| 1 | −5.5% | $720.90 | 5% | $10,000 | 13 |
| 2 | −11% | $678.95 | 7.5% | $15,000 | 22 |
| 3 | −16.5% | $636.99 | 10% | $20,000 | 31 |
| 4 | −22% | $595.03 | 12.5% | $25,000 | 42 |
| 5 | −27.5% | $553.07 | 15% | $30,000 | 54 |
| 6 | −33% | $511.12 | 15% | $30,000 | 58 |
| 7 | −38.5% | $469.16 | 10% | $20,000 | 42 |
| 8 | −44% | $427.20 | 10% | $20,000 | 46 |
| 9 | −49.5% | $385.24 | 7.5% | $15,000 | 38 |
| 10 | −55% | $343.29 | 7.5% | $15,000 | 43 |
How the levels were set
Each ladder has ten buy levels, evenly spaced from the high, using the original app’s sizes: 5%, 7.5%, 10%, 12.5%, 15%, 15%, 10%, 10%, 7.5% and 7.5% of the cash. The heaviest two buys are rungs 5 and 6. We set the bottom rung at the second-deepest bear market in the ticker’s history, rounded to the nearest 5%. That is the level only one bear went past. The other rungs are equal steps down to it.
A bear market here means a fall of 20% or more from a record close, measured to the lowest close before a new record. That is the same frame the ladder uses: you scale in from a high and reset after a new high.
For QQQ we use its own daily closes since Mar 10, 1999. QQQ was still below its 2000 high when the 2007–09 bear began, so the record-to-record method would fold 2008 into the dot-com bust. We count 2007–09 separately, from QQQ’s Oct 31, 2007 high. That gives 6 bear markets. The median depth was −32.1% and the deepest was −83.0% (2000–02). The second-deepest was −53.6% (2007–09), which rounds to −55%. So the steps are 5.5%. The heaviest buys land at −27.5% and −33%, bracketing the median bear, the same way SPY’s −25% and −30% bracket the S&P’s −31.6%. Only the dot-com bust went past −55%.
| Bear | High | Low | Depth | Low to new high |
|---|---|---|---|---|
| 2000–02 | Mar 27, 2000 | Oct 9, 2002 | −83.0% | 166.9 mo |
| 2007–08 | Oct 31, 2007 | Nov 20, 2008 | −53.6% | 25.4 mo |
| 2018 | Aug 29, 2018 | Dec 24, 2018 | −23.2% | 3.7 mo |
| 2020 | Feb 19, 2020 | Mar 16, 2020 | −28.6% | 2.7 mo |
| 2021–22 | Nov 19, 2021 | Dec 28, 2022 | −35.6% | 11.6 mo |
| 2025 | Feb 19, 2025 | Apr 8, 2025 | −22.9% | 2.5 mo |
Data: QQQ daily closes, Mar 10 1999 - 2026, from Yahoo Finance daily closing prices. Analysis run Oct 25, 2026. Depths use closing prices, so intraday lows were a bit deeper.
Worked example
Start with the defaults: $200,000 of separate cash and an anchor high of $762.86, QQQ’s 52-week high as of Oct 23, 2026 (the app keeps the anchor on the live 52-week high unless you set your own). The calculator opens on an example at the first rung: if QQQ fell to $720.90 (−5.5%), the order is 13 shares, $10,000 or 5% of the cash. Tap Use today’s price to run it at the live quote instead.
Say QQQ falls −32.1% from the high, the median depth in the history below, to about $517.98. Rungs −5.5% through −27.5% have filled: 5 orders, 162 shares, about $100,000 deployed (50% of the cash). The remaining $100,000 waits for −33% and lower.
If it keeps falling to −55% ($343.29), all ten rungs are filled and the full $200,000 is in. Nothing is reserved past that level. If price gaps through several rungs at once, they go in as one combined order.
After you buy: the income side
The Dry Powder Trade is to take advantage of the pullbacks. We always have at least 40% of our portfolio in cash (dry powder) and we scale in as QQQ falls in price. It’s buying the dip plus powerful income generation.
After we load our shares and QQQ stabilizes we will sell covered calls (1 for every 100 shares we own), collecting premium on the way up. We can also buy 1 leap call for every 100 shares of QQQ we own as soon as the price is trading above the 21 SMA. Once we establish a leap call position we can turn that position into a PMCC by selling a covered call on each leap we own.
Risks and limits
- History sets the levels, but the next bear can be shallower (the cash never gets used) or deeper (the ladder runs out). QQQ is concentrated in large tech stocks. In 2000–02 it fell 83% and took about 14 years to regain its high. This ladder is fully spent at −55%.
- Buying the dip means buying while the price is still falling. Each fill can show a loss for months.
- Limit orders can miss if price only touches a level, or fill on a fast drop that keeps going.
- Cash for this plan should be money you will not need during a long bear market.
- The covered calls and LEAPS in the plan add option risk. See the OCC’s “Characteristics and Risks of Standardized Options” before trading options.
QQQ buy the dip FAQ
What is the dry powder trade for QQQ?
It keeps a separate pile of cash (dry powder) and buys QQQ in ten steps as it falls from its high: a small buy at −5.5%, the largest buys at −27.5% and −33%, and the last at −55%. One fill per level, and nothing is bought between levels.
How much QQQ does the calculator buy at each level?
With $200,000: $10,000 at −5.5%, $15,000 at −11%, $20,000 at −16.5%, $25,000 at −22%, $30,000 at −27.5%, $30,000 at −33%, $20,000 at −38.5%, $20,000 at −44%, $15,000 at −49.5%, $15,000 at −55%. Shares = dollars ÷ limit price, rounded down.
Why are the biggest QQQ buys at −27.5% and −33%?
QQQ’s bear markets since 1999 had a median depth of about −32.1%. The two heaviest rungs bracket that level, so about $130,000 is in if the drop stops at a typical depth.
What if QQQ falls more than 55%?
The ladder is fully spent at −55% and nothing is reserved past it. Since 1999 that has happened once, in the 2000–02 dot-com bust (−83%).
What is the anchor high, and when do I reset?
The anchor is the high you measure every drop from. Here it starts at the 52-week high and follows the live quote, or you can set your own. Keep it until a new high replaces it. After a new high, and only once the account is funded again, reset the filled rungs and start a new campaign from the new high.
Is VIX a buy signal in this plan?
No. VIX is shown for context only. Buys happen only when the price reaches a rung.
What is dry powder, and what amount should I enter?
Dry powder is cash kept ready to invest when prices fall. In this calculator it is the cash you have set aside only for buying QQQ dips: money you won’t need for bills or other trades. Enter that amount in Step 1 (the page starts with an example of $200,000); the ladder splits it across 10 buy levels, and the number is saved only in your browser.
What is IV Rank, and why is it based on VXN for QQQ?
IV Rank (1y) shows where implied volatility sits in its past-year range: (today − 1-year low) ÷ (1-year high − 1-year low) × 100. 0 means at the year’s low, 100 at the year’s high. IV percentile is the share of the past year’s daily closes that were below today. We use VXN: Cboe’s 30-day implied volatility of Nasdaq-100 options. QQQ tracks the Nasdaq-100, so VXN is the stand-in for QQQ’s own implied volatility. Free daily history of QQQ’s own option volatility isn’t available, so we started logging it each day and will switch once a year of it exists. On the last build it was 68, with VXN at 28.30 against a 1-year range of 17.20 to 33.54.
Why does IV Rank matter for selling puts versus buying the dip in QQQ?
Option prices rise with implied volatility. When IV Rank is high, puts pay more premium, and that is also usually when prices have already fallen and fear is up. When it is low, premiums are thin and markets are often calm near highs. The ladder on this page buys shares on price alone, so IV Rank is context, not a trigger. It describes option prices, not where QQQ goes next.
Where are my fills saved?
In your browser only (local storage on this device). Nothing is sent to us. Clearing your browser data clears your fills and notes.
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