I want you to understand how unusual the moves were today.
Before Trump announced a pause, there was HUGE
$QQQ volume on a 460C expiring 04/17.
They were bought for $0.85 and ran to as high as $31 per contract!!!
This was before any news.
Later in the day, it rallied 2000% in ten minutes.
The trader made millions.
Why was this unusual? For a few reasons:
- Firstly new opening volume on chain, minutes after market open
- IVR of 80 on
$QQQ, with iv percentile of medium. So vol wasn’t anticipating a move this big
- all execution happened at once, at ask
- this was wildly out of the money at the time
- market was bearish, across the board
Unusual.