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May 23, 2013  Thu 4:14 AM CT

NDX: SEE CHART GET CHAIN FIND STRATEGIES
A large spread was betting on a floor in the Nasdaq 100 as the index fell yesterday.

optionMONSTER systems show that a trader sold 7,318 June 2875 puts for $11 and bought the same number of June 2865 puts for $10.10. The volumes were higher than the previous open interest in each strike, so this is new credit spread.

This spread takes in a credit of $0.90, which is the maximum profit if the NDX remains above 2875 through expiration in mid-June. The maximum potential loss is $9.10. (See our Education section)

The NDX lost 0.9 percent to close at 2999.13. The index traded as low as 2984.84 after hitting a 13-year intraday high above 3053. It was last below 2865 on the last day of April.

More than 52,000 NDX options changed hands, compared to a daily average of 14,535 over the last month.
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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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