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75,000 QQQ calls Toddo? Isn't that very bearish?

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File this thought under the "sharp as a marble" section of today's commentary. The AHO (US Foods) accounting irregularity is the first we've heard of this in quite some time and it's likely responsible for much of the weakness in the financial complex. I've heard chatter this morning that select brokers have big risk to this company and, while I can't comment on that (I don't know), it certainly doesn't help the collective psychology.

A couple of themes are beginning to stand out. The semi's have started to turn higher and that's lending to the "N's over S's" that we're seeing. This group has clearly lagged in recent session and IF (big if) they can overcome SOX 300ish, it'll merits attention in trading circles. I'm seeing size call buyers in the SOX and that's helping the sector lift (and squeeze the shorties). Oh yeah, the 75,000 QQQ calls being bought right now doesn't hurt either!

For purpose of my metaphorical exposure, I'm going to employ an S&P 845 stop on one of my bear legs. By doing this, I leave my upside (to the downside) open while defining my risk. I put the leg into the costume around that level (on Friday) and if I can craft a profile that allows me to win while limiting my loss to a flat trade, that's mucho appealing. I still think lower, mind you, but the mechanics of the swing are as important as the result of the at-bat.

Regarding the charity auction, Snoop Tone has entered the mix and he'll be joining the winner and I for the sushifest. In addition, the winner has the option to taking a personalized tour on the floor of the exchange and Lou the Shoe just told me that he'd handle it himself. If you've never been to the floor--and if you've never met the Shoe--trust me when I tell ya it's a once in a lifetime experience. Wasabi!

I'll be back.

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Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at todd@minyanville.com.

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