QQQ Leaps Put Spread

Any one out there get a handle on the qqq jan 05 45/55 put spread. Rumor it is an overseas customer. I guess he is getting long dollars. No other reason I see for this trade unless he is painting the tape to get a high put call ratio.

 

I see all of the QQQ Jan 05 45 Puts that traded across each exchange. Can you get the T/S for them all? It looked like around 200K on the CBOE, 100K at Philly, and 25K at the AMEX. I did not see any (if I remember correctly) of the 55s on my quote provider. The OI on the 45s was upwards of 400K. I will check with my other quote provider on the 55s.

Update : My other quote provider shows 519K traded at the 45 Strike, and little to no action at the 55 Strike. I am interested to see how the OI numbers adjust tomorrow.

P.S. You've seen the Dalai Lama?

 

No I did not get the volume or time and sales of the 55's. I spoke to an institutional source of mine and they told me about the trade. It was also traded on Tuesday.

 

For the third time this week, the put/call ratio was skewed by a large spread trade involving long-term puts in the Nasdaq 100 Trust (QQQ:Amex - news - commentary - research - analysis), traders said. An investor bought a large chunk of January 2005 45 puts and sold an equal number of the January 2005 55 puts.

Specifically, 73,000 contracts of each put series were traded, making them the most active of the session, according to the CBOE, and producing a sharp increase in overall put activity. (The fund manager was also actively trading the January 2005 45 put QQQ LEAPS -- another form of option -- Thursday, but not the 55 puts.)

"If you take out the quantities of these trades, the put call/ratio is far from being" 2.55, observed one options trader.

Jon Najarian, president of Mercury Trading, one of the largest market makers at the CBOE, dubbed the put spread trades "outlandish and huge," resulting in "the most extraordinary index put volume I've ever seen" The trades were rumored to be done by a British-based hedge fund, although he couldn't specify which one.

 

The Jan 2005 45/55 credit put spread is quoted 9.70/10.10 and can be had on a 0.30 margin. Two years from now the spread could be worth as much as $10 ...

 

Absolutely insane. I like the one guy on the PAC who got his whopping 1 contract in b4 the close. I missed what you guys were saying about the 55 puts. Was this spread legged in or what are the logistics here???? Is he selling the 45's & covering with the 55's......If he is selling, he got much better fills at the PHIL


11:08:33 5000 21.00 - AMEX
11:08:27 9999 21.00 - AMEX
11:08:18 1 21.00 - AMEX
11:08:12 9999 21.00 - AMEX
11:08:03 1 21.00 - AMEX

11:03:33 5000 21.10 - PHIL
11:03:27 5000 21.10 - PHIL
11:03:27 5000 21.10 - PHIL
11:03:24 5000 21.10 - PHIL
11:03:21 5000 21.10 - PHIL
11:02:51 5500 21.20 + PHIL
11:02:48 5000 21.10 - PHIL
11:02:45 5000 21.10 - PHIL
11:02:45 5000 21.10 - PHIL
11:02:39 5000 21.10 - PHIL
11:02:36 8000 21.20 + PHIL
11:02:30 8000 21.20 + PHIL
11:02:30 8000 21.20 + PHIL
11:02:27 8000 21.20 + PHIL
11:02:27 3500 21.10 - PHIL
11:02:24 9000 21.10 - PHIL
10:58:51 25000 21.10 - PHIL
10:58:33 37500 21.20 + PHIL
10:58:12 37500 21.20 + PHIL

10:37:24 2000 21.00 + CBOE la
10:37:00 9000 21.00 + CBOE la
10:36:33 9000 21.00 + CBOE la
10:36:03 9000 21.00 + CBOE la
10:35:51 9000 21.00 + CBOE la
10:35:42 9000 21.00 + CBOE la
10:35:30 9000 21.00 CBOE
10:35:06 9000 21.00 - CBOE
10:34:51 9000 21.00 - CBOE
10:34:18 9000 21.00 - CBOE
10:33:54 9000 21.00 - CBOE
10:33:33 9000 21.00 - CBOE
10:33:21 9000 21.00 - CBOE
10:32:45 5000 21.00 - CBOE
10:32:33 7000 21.00 - CBOE
10:32:03 9000 21.00 - CBOE
10:31:48 7000 21.00 - CBOE
10:31:30 8000 21.00 - CBOE
10:31:18 1000 21.00 - CBOE
10:31:06 9000 21.00 - CBOE
10:30:27 9000 21.00 - CBOE
10:29:57 8000 21.00 - CBOE
10:29:36 9000 21.00 - CBOE
10:29:21 8000 21.00 - CBOE
10:28:27 1000 21.00 - CBOE
10:28:12 9000 21.00 - CBOE

10:17:24 37500 21.20 + PHIL
10:16:57 37500 21.20 + PHIL
10:14:45 25000 21.10 - PHIL
10:14:03 2500 21.20 + PHIL

09:41:45 1 21.00 PAC

 

This could have been some sort of weird arb play.

 

To follow up with the previous post, one way to analyze it would be to look at the ED's.

 

Trajan, are you talking about eurodollar options?

 

are there any programs or services that scan for these abnormal purchases, sales. seem like they could be helpful before earnings releases.