Call selling bets on cap in QQQ
Chris McKhann | [email protected]
optionMONSTER's tracking systems detected the sale of 13,800 June 98.63 calls for the bid price of $0.31 today. This is clearly a new position, as the volume was 10 times the previous open interest in the strike. (The QQQ strikes have been adjusted for the special dividend with a record date of March 3.)
The call seller is betting that the QQQ won't be above that $98.63 strike price by expiration in mid-June. The contracts could have been sold naked with an initial bearish bias or traded against long shares in a covered-call strategy. (See our Education section)
The QQQ is up 0.43 percent to $90.83 in midday trading after climbing to $90.96 in the morning, its highest price since September 2000. The exchange-traded fund, which tracks the Nasdaq 100, was down at support around $84 in early February.