PowerShares QQQ (QQQ) adds 76 cents to $64.33 on relatively light volume approaching 20 million shares (expected is 26.5 million). But options on the Qs are actively traded. 307,000 puts and 146,000 calls so far. The top trade is a 25000-lot of Sep 64 calls for $2.58 on ISE and an opening buyer, according to ISEE. Beyond that, the flow seems somewhat defensive, however. August 56 puts are the most actives and the 53300 contracts includes a 23000-lot for 35 cents when the market was 33 to 35 cents. Recent trades include a Sep 52 – 57 – 60 put ladder, for 13.5 cents, 40000X. The strategist bought the 60s and sold the two other strikes, creating a bearish spread with a max payout if shares fall to $57 through the September expiration. Meanwhile, implied volatility in the Qs, as measured by the QQV Index, is down 1.19 to 16.77 and has plummeted 27.2 percent over the past three days.
Category: All ETFs
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.