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Dan Nathan Sees Unusual Options Activity In PowerShares QQQ Trust, Series 1 (ETF)


Dan Nathan spoke on CNBC's Options Action about a trade in PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ: QQQ) that caught his attention on Monday.

A trader decided to roll out his position and bought 25,000 contracts of the May 113 call options for $0.89, paying a premium of $2.3 million. The breakeven for this trade is at $113.89 or approximately 4 percent higher.

Nathan explained that implied volatility has decreased recently and index ETFs have generally lower options prices than single stocks. He added that this is a good way to get some cheap implied volatility exposure to the upside and define your risk.

Posted-In: CNBC Dan Nathan Options ActionOptions Markets Media


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