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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. 
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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