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Dan Nathan's PowerShares QQQ Trust, Series 1 (ETF) Trade

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Dan Nathan said on CNBC's Options Action that he is expecting to see some weakness in the market in the first quarter of the year.

To make a bearish bet he decided to buy a calendar put spread in PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ: QQQ). Specifically, he sold the December quarterly 101 put for $0.25 and bought the February 101 put for $1.70. Nathan paid $1.45 for the spread and he is expecting PowerShares QQQ Trust, Series 1 (ETF) to trade above 101 into the year end and to turn lower in February. The breakeven for this trade is at $99.55 or approximately 5 percent lower.

 

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Posted-In: CNBC Dan Nathan Options ActionOptions Markets Media

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