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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)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 break even for this trade is at $99.55 or approximately 5 percent lower.
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