Click to View this Strategy in SQQQ Option Chain Profit Calculator
SQQQ Call Spread Traders Pocket 7.9% Gain on 7,816-Contract Bet—Strategy or Speculation?
When 7,816 contracts change hands in a single call spread on ProShares Ultrapro Short QQQ (SQQQ), traders take notice. The Jun 6, 2025 expiration $22/$22.5 call spread, bought for a VWAP of $0.30, notched an immediate average gain of 7.9% as SQQQ edged up $0.02. Here’s what you need to know about this eye-catching trade—and what the data suggests about sentiment and strategy going into expiration.
Key Call Spread Trade: 7,816 Contracts for $0.30 Average, Already in the Money
| Expiration | 06-Jun-25 |
|---|---|
| Strikes | $22 / $22.5 Call Spread |
| Number of Contracts | 7,816 |
| Days to Expiration | 1 |
| VWAP Trade Price | $0.30 |
| VWAP Bid / Ask | $0.26 / $0.32 |
| Stock Price at Trade | $22.58 |
| Spread Price at 14:35 ET | $0.32 |
| Stock Price Now | $22.60 |
| Gain on Trade | +0.02 (+7.9%) |
See more details in the Multi-Leg Trade Analyzer
Risk and Reward: $116,000 Wager to Potentially Net $79,000
Buying 7,816 call spreads at $0.30 cost over $116,000 in premium. The structure means buyers are betting SQQQ will finish above $22.50 at expiration—a tight 1-day window. If SQQQ closes above $22.50, the spread could pay out $0.50, netting a maximum gain of about $79,000, or 68% on capital at risk.
- Break-even: $22.30 on expiration
- Max Profit: $0.50 per spread ($39,080 for 7,816 spreads), minus $0.30 paid
- Outcome relies on: SQQQ closing above $22.50 by Jun 6, 2025
SQQQ’s Technicals Paint a Bearish Picture Despite the Tactical Bet
| Price | $22.60 |
|---|---|
| Change | +0.12 (+0.53%) |
| Change From Open | +1.4% |
| Vs. 52-Week High | -61.0% |
| Vs. 52-Week Low | +1.2% |
| Vs. 20-Day MA | -8.0% |
| Vs. 50-Day MA | -28.9% |
| Vs. 250-Day MA | -36.3% |
| Trend | Downtrend |
The short-term rally into this trade contrasts a broader technical downtrend. SQQQ is down 48.4% in the past year (while SPY gained 14.1%) and trails across all key durations. With the stock just off its 52-week low, the near-term price is fighting major resistance at $23.35 and dipped below expected support of $21.61.
SQQQ Has Consistently Underperformed SPY Across All Time Frames
| Duration | SQQQ Return | SPY Return | Low | High |
|---|---|---|---|---|
| Today | +0.5% | 0.0% | 21.94 | 22.93 |
| 2 Weeks | -8.0% | +2.2% | 21.94 | 25.69 |
| 1 Month | -21.0% | +5.1% | 21.94 | 30.83 |
| 3 Months | -31.7% | +3.6% | 21.94 | 57.80 |
| 6 Months | -20.6% | -1.4% | 21.94 | 57.80 |
| 1 Year | -48.4% | +14.1% | 21.94 | 57.95 |
| YTD | -25.9% | +1.9% | 21.94 | 57.80 |
| 3 Years | -86.5% | +50.1% | 21.94 | 347.75 |
| 5 Years | -97.2% | +101.5% | 21.94 | 1176.25 |
Option Market Skew Remains Bullish Despite Downtrend
One possible reason for the surge in call spread activity: option market sentiment is leaning bullish, with the 30-day implied volatility skew registering a 90% rank—meaning the market is at its most bullish posture in almost a year. This bullish skew stands out against the persistent negative price trend and may indicate some traders expect a reversal, or are hedging for a short-term pop in SQQQ’s price.
What’s the Takeaway? Tactical Bet with Bullish Skew in Play
The 7,816-contract call spread, producing a 7.9% return in just hours, highlights tactical options activity possibly aimed at capitalizing on a near-term price recovery. With only one day to expiry and technicals firmly negative, the bet relies on a last-minute rally or short-covering spike.
The bullish option skew hints that this is not an isolated opinion—but the overall market sentiment does not necessarily translate to lasting performance. Traders and analysts looking to spot similar moves can browse more multi-leg trade activity here.
Is this a calculated hedge, an opportunistic speculation, or a sign of positioning into the close? Only time will tell—but for now, SQQQ’s options market is anything but quiet.
Contact Information:
If you have feedback or concerns about the content, please feel free to reach out to us via email at support@marketchameleon.com.
About the Publisher - Marketchameleon.com:
Marketchameleon is a comprehensive financial research and analysis website specializing in stock and options markets. We leverage extensive data, models, and analytics to provide valuable insights into these markets. Our primary goal is to assist traders in identifying potential market developments and assessing potential risks and rewards.
NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.
The information is provided for informational purposes only and should not be construed as investment advice. All stock price information is provided and transmitted as received from independent third-party data sources. The Information should only be used as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments and trading strategies. The Company does not guarantee the accuracy, completeness or timeliness of the Information.