Zeev's Turnips Patch-No Politics (ZEEV)

[hedger]

Hi Aloha
Based on your explanation, I agree that the excess puts (~8000) were most likely placed by the same trader.
Yes, you could call this a put ratio backspread but not in the traditional sense. These spreads typically follow ratio rules (# of higher strike/# of lower strikes should not exceed .67 in this case)ie: 1 to 2 or 2 to 3 qualify. However in this case the ratio would be ~102/110 or ~.93 and, therefore, I do not consider this a true ratio spread.
It is easier for me view this in terms of two trades ( a long put and a bull put spread ). Regardless of what you call this, the overall profit/loss profile is the same in either case.
I believe this trader took the credit from the bull put spread and financed the long put. In effect, I believe this trader is betting on a nearer term drop in the QQQ (long put)with little or no risk in his/her spread, as this trade is so far out that the time premium will not be affected. 8000 long puts with no cash outlay is great provided the the QQQ goes lower.
All of the above is pure speculation as I have no assurance that this position was taken.