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Friday’s Options Action Trades Recap

Last week’s moves in technology names told two strikingly different stories. Normally high-flying

Netflix

cooled off, falling 24%, and

Research In Motion’s

stock slid 20% after an earnings report that showed the company’s woes are far from over. On the other side, names like

Amazon

and

Intel

showed strong gains, with both names up over 10%. Despite Intel’s rally, Riskreversal.com’s Dan Nathan took a look at the stock over the past year and saw trouble in the technicals. He expressed his bearish outlook by buying a put spread. His trades and payouts are below.

Dan’s Put Spread On Intel

  • BUY OCT 21-STRIKE PUT FOR $0.50
  • SELL OCT 20-STRIKE PUT FOR $0.25

How Dan’s Intel Trade Makes Money

  • LOSSES ABOVE 20.75
  • PROFITS BELOW $20.75
  • PROFITS CAPPED AT $20

Cantor Fitzgerald’s Mike Khouw then took the focus off single stocks and offered a strategy for playing the broader technology space through year-end. He took a look at the QQQ , an ETF that tracks the Nasdaq 100. Like Dan, Mike sided with the bears and used a put spread to express his sentiment. His trade and payouts are below.

Mike’s Put Spread on QQQ

  • BUY DECEMBER 56-STRIKE PUT FOR 2.40
  • SELL DECEMBER 51-STRIKE PUT FOR 1.05

How Mike’s QQQ Trade Makes Money

  • PROFITS BELOW 54.65
  • LOSSES ABOVE 54.65
  • PROFITS CAPPED AT 51

Watch Options Actionon CNBC Fridays 5:00pm ET, Saturdays at 6a ET and on Sundays at 6a ET

Questions, comments send them to us at: optionsaction@cnbc.com

Symbol
Price
 
Change
%Change
AMZN
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INTC
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NFLX
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QQQ
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BB
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