The PowerShares QQQ Trust is seeing a large call trade this morning, and there are two possible strategies behind the move.
optionMONSTER’s Heat Seeker system detected the sale of 5,000 January 84 calls for $1.21 against open interest of 44,000 and the purchase of 10,000 January 88 calls for the ask price of $0.20. The previous open interest at the latter strike was just 2,843, so that is a new position.
This could be a new backspread, with the trader using the sale of the lower-strike calls to more than offset the purchase of twice as many higher-strike contracts. That position could profit if the QQQ remains below $84 or if it runs sharply higher.
— Option Monster