A large position is betting that potential downside is limited for the PowerShares QQQ Trust, which is rebounding from yesterday's drop.
The QQQ, which tracks the Nasdaq 100, is up 0.9 percent to $63.12 this afternoon as it regains ground it lost after heavily weighted Apple missed earnings estimates Tuesday evening. The exchange-traded fund was above $65 last week, its highest since early May, but support has been holding around $62 since shares bounced off six-month lows around $60 reached on June 4.
optionMONSTER's systems detected the sale of 15,000 September 56 puts for the bid price of $0.42. The volume was 3 times the previous open interest, so this is a new position.
The put selling is a bet that the QQQ won't fall below the $56 strike price in coming months. The trader is willing to buy the stock if it does dip below that level, where shares gapped higher at the start of 2012. (See our Education section)
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