Learn the trade here. Make it on tradeMONSTER

Options Trading News

February 28, 2014  Fri 11:06 AM CT

QQQ: SEE CHART GET CHAIN FIND STRATEGIES
The PowerShares QQQ Trust has climbed to new 13-year highs, but a large trade is betting that further gains will be limited.

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. 
Share this article with your friends


TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Free Webinars

Swing Trading w/ Jon Najarian and Ron Ianieri

Education & Strategy

When to listen (and not talk)

Success is often built on listening. I just spent a few days on vacation with the family, with a number...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER