I don't normally read this thread, but wandering by on a search, so please pardon
if this has been discussed already...
QQQ options now trade on 4 exchanges... very soon to be all 5 (PHLX is the last).
did anyone catch the below?
and also the massive calls traded the day before.
notice that all of these options traded at the CBOE.
I haven't looked more closely, but my guess is it's a pure setup for press releases to come
from the CBOE on how they are trading such a high volume on QQQ options.
my guess is that all of these large trades are fully hedged/riskless trades in order to
generate volume. much like I think the initial MNX volume was used to as fodder for
CBOE press releases.
schaeffersresearch.com
> 5:52:41 PM
> There were two very large block trades on the Nasdaq-100 Trust (QQQ -
> 48.50) that went off today on the CBOE. The first was a strangle trade
> that involved approximately 100,000 April 43 puts for 1.50 and the
> same number of April 53 calls for 2.10. These transactions happened
> between 3:25 and 4:05 and appear to be sales. If this is the case, the
> seller collected $360 for every pair of contracts sold. The objective
> of the short strangle is for the QQQ to finish between the strike
> levels, 43.00 and 53.00, by April expiration. The breakeven points for
> this trade are 39.40 and 56.60.
>
> The other trade was a straddle in which about 40,000 April 48 puts and
> April 48 calls changed hands at 3.40 and 4.20, respectively. These
> trades occurred between 2:55 and 4:05 and also appear to be sales. If
> so, the seller collected $760 for each contract pair sold. The
> objective of this short straddle is for the QQQ to close at 48 by
> April expiration in order to achieve full profitablity. The breakeven
> points for this trade are 40.40 and 55.60. Between these points, the
> trade will yield a profit. Outside these levels will result in a loss. |
