Invesco QQQ Trust Series 1 (QQQ)

[DragonBits]

farooq, Whenever I over think my trades it usually results in losing money. And I can spin as many scenarios as anyone.

I know what you are saying, but the MM has very little control over the index market. They will typically hedge their risks by shorting stocks or using other options.

And a big trade, (which I cannot say what big really is, 5,000 at .34 is $170,000, not big by mutual fund standards, but a pretty good size) is normally entered into as a block trade and the MM knows about it in advance, so the puts could have been a combination of more expensive puts were shorted at higher prices by the MM so that they could sell it to the buyer at 34. If the MM knows there is a sure trade at 34 for 5000, they can short a lot at 35-41 and sell it all to the buyer at 34. There are many ways it can be done, but the options MM is always going to want to be delta neutral at the end of the day.

So I doubt the MM at this point really cares what happens to the market.

IMO nothing in the market is as it appears, but that is what we all have to live with.

I was thinking of you when the market closed and the last trade I saw on that option was 40 at 1.12, I had thought you put in at 1.10 in an earlier post and thought that might have been your trade. Congrats on the 22% return.