Last week’s moves in technology names told two strikingly different stories. Normally high-flying
Netflixcooled off, falling 24%, and
Research In Motion’sstock slid 20% after an earnings report that showed the company’s woes are far from over. On the other side, names like
Amazonand
Intelshowed 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
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