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

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.

Mike Khouw spoke on CNBC's Options Action

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about an options trade in PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ: QQQ) 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 PowerShares QQQ Trust, Series 1 (ETF)

drops to $96 or lower at the August expiration. Khow added that this trade is probably a hedge for a long position in PowerShares QQQ Trust, Series 1 (ETF).