Mike Khouw Sees Unusual Options Activity In PowerShares QQQ Trust, Series 1 (ETF)

Mike Khouw spoke on

about an options trade in

that he noticed on Wednesday. He said that a trader sold 17,000 contracts of the August 109 call options for $2 to buy 34,000 contracts of the August 101/96 put spread for a premium of $1. The total net premium paid is zero and the trade is going to make a profit if the stock drops below $101 at the August expiration. It can maximally make $5, if

drops to $96 or lower at the August expiration. Khow added that this trade is probably a hedge for a long position in

.