NQ
$20 per index point
One contract, one point: $20 of price-based profit or loss. The minimum outright tick is 0.25 points, worth $5.
DERIVATIVES / OUR 2 + 2 FOCUS
A market view.
Know the exposure.
Know what a point means, what time changes, and how the instrument shapes the risk. Start in plain language. Go deeper where it matters.
Try the payoff labNQ & ES FUTURES
One point.
Real exposure.
The chart is only the start. Contract size turns a price move into dollars. A long position benefits from a rise; a short position benefits from a fall, before costs.
ES
$50 per index point
One contract, one point: $50 of price-based profit or loss. The minimum outright tick is 0.25 points, worth $12.50.
Price change × dollars per point × contracts = gross price P/L
Margin supports the position. It does not cap the loss. Adverse moves can require more funds, and losses can exceed the initial deposit.
Margin, execution, and contract roll
Margin: Initial and maintenance requirements are collateral requirements. Exchange and broker requirements can change. Available buying power and a planned risk budget answer different questions.
Execution: A planned protective price is not a guaranteed fill. CME futures order behavior includes stop-limit and stop-with-protection instructions. A limit or protection range can constrain execution; product and broker behavior matter.
Contract roll: NQ and ES are cash-settled index futures with expiration dates. Know the active contract and liquidity around a roll. Rolling closes one expiration and opens another; it changes the contract, not the need to manage exposure.
Futures sources
CME contract values · NQ specifications · ES specifications · CFTC futures risk · CME futures order types.
QQQ & SPY / 0DTE OPTIONS
Right direction.
Still losing?
A call gives its buyer a right to buy; a put gives a right to sell. The premium pays for that right. Price, time, and implied volatility all matter before expiration.
QQQ
Options on the Nasdaq-100-tracking ETF.
SPY
Options on the S&P 500-tracking ETF.
A STANDARD CONTRACT
100 shares
A hypothetical $5 quoted premium × 100 shares = $500 paid per contract, before costs. Adjusted contracts can differ.
0DTE means it expires that trading day. The time left is part of the position. A purchased option can lose its full premium; exercise can create a share position with additional funding and market exposure.
The Greeks, in plain language.
Model-based sensitivities that change with conditions. Open a term for the more technical definition.
DeltaHow much does price matter?
The estimated change in option value for a one-unit move in the underlying, with other inputs held constant. Delta is a local sensitivity, not a fixed relationship.
GammaHow quickly does delta change?
The estimated change in delta for a one-unit underlying move. Near expiration, near-money options can become especially sensitive to small underlying moves.
ThetaWhat does passing time change?
The estimated effect of time passing on option value, with other inputs held constant. Time decay varies with strike, expiration, and conditions.
VegaWhat if implied volatility changes?
The estimated change in option value for a one-percentage-point change in implied volatility, with other inputs held constant. Implied volatility is inferred from prices, not a promised move.
Exercise, expiration, and the underlying shares
Standard QQQ and SPY options are American-style ETF options: they can be exercised before expiration, and exercise delivers ETF shares. One standard contract generally represents 100 shares.
The premium describes the purchased option exposure while it remains an option. Exercise changes the position and can create funding obligations and further market exposure. Confirm broker deadlines, exercise instructions, and the actual contract terms.
QQQ and NQ share a Nasdaq-100 reference; SPY and ES share an S&P 500 reference. That overlap does not make the instruments interchangeable. Financing, expiration, settlement, and nonlinear option sensitivities differ.
This guide focuses on purchased calls and puts. Option writing has a different risk profile and is not modeled in the lab.
Options sources
OCC ETF contract mechanics · OIC options basics · OIC Greeks · Cboe 0DTE · QQQ issuer · SPY issuer.
THE PAYOFF LAB
Points move.
Dollars follow.
How much does the move actually mean? Pick a position, drag the market move, and see the dollars. The futures view starts from a dated reference; options show outcomes at expiry.
Entry reference28,790.25December 2026 futures
Adjust the starting reference Already filled in; edit only if useful
Saved references are dated, not a live feed.
ILLUSTRATIVE P/L / BEFORE COSTSLong futures
+ Profit− Loss comparison
MOVE THE MARKET
−300 points+300 points
Modeled exit reference: 28,810.25
NQ · 1 contract · before costs+$400A 20-point rise helps this long position.Break-even: entry reference
The move is an input, not a forecast. Results exclude fees, spread and slippage. Options use expiry values, not intraday premium pricing; time and volatility can change a pre-expiry result. Margin cash flows, financing, exercise, and assignment are excluded. The chart’s range does not cap futures losses.
Want the entry-to-exit story? Compare the two liquidity traps.
LET’S COMPARE APPROACHES
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