Options Flow Summary: General Sentiment, PowerShares QQQ & Pin Candidates

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General Sentiment
A quiet start to a triple-witching expiration week that also features a Fed meeting. Most sectors are trading slightly lower and implied volatilities are lifting.  The CBOE VIX is up more than a point and a half to 26.45. Flow is relatively neutral, suggesting a defensive bias as traders concentrate on limiting exposures and covering positions where possible.





PowerShares QQQ ETF (QQQQ)
A very large 3-way spread traded in the Nasdaq proxy ìQísî just after noon today on the Amex and ISE.  In this trade, an institutional client bought a November ratio strangle and sold October out-of-the-money puts for a net debit.

With the ETF trading close to $48.65, this client bought 60,000 November 49 puts and 20,000 November 52 calls. At the same time, he also sold 100,000 October 46 puts for a net debit of nearly $3.16. 

Based on the open interest levels, this trade looks to be opening on all sides. It will reach maximum payoff if the markets hold together through the end of October followed by a correction prior to November expiration.

Pin Candidates
The following large-cap names have significant open interest positions in September options near spot:

Symbol	Expiry	Strike	Put / Call	Spot	Distance	OI
GM	Sep7	35	Calls	$35.02	0.02	66,229
GM	Sep7	35	Puts	$35.02	0.02	35,974
YHOO	Sep7	25	Calls	$24.98	0.02	55,712
YHOO	Sep7	25	Puts	$24.98	0.02	20,219
UNH	Sep7	50	Calls	$49.94	0.06	28,410
UNH	Sep7	50	Puts	$49.94	0.06	55,670
ORCL	Sep7	20	Calls	$19.91	0.09	54,256
ORCL	Sep7	20	Puts	$19.91	0.09	21,887
INTC	Sep7	25	Calls	$24.89	0.11	61,791
INTC	Sep7	25	Puts	$24.89	0.11	51,983
GE	Sep7	40	Calls	$40.18	0.18	104,491
GE	Sep7	40	Puts	$40.18	0.18	27,333

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