That's a meaty order!
A customer walked into the crowd just now and bought 130,000 QQQ June 31 calls. That creates 4.2 million QQQ to buy. Why? Those who sold the calls (to the buyer) must hedge themselves. 130,000 x 100 (multiplier) x .33 (delta) equates to 4.2 million QQQ.
Watch to see how the market reacts to that demand (an inability to lift will infer supply). Also, SPY 98.5 and QQQ 30.25 will be new highs (vs. earlier in the week) and should trigger stops (if and when).
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 firstname.lastname@example.org.
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