“Traders are buying calls on leveraged short funds to profit from a falling market. The ProShares UltraShort QQQ fund (NYSE:QID), which provides twice the inverse daily returns of the PowerShares QQQ Nasdaq 100, is up 3.52 percent to $17.95, doing its job well as the broader market declines. We see more than 15,000 of the September 19 calls trade on (NYSE:QID), almost all of them bought, the largest block of 6,295 for $0.73. This volume was more than 10 times the previous open interest. Calls in the fund outnumber puts by 16 to 1, reflecting the strong bias on the short side. The Direxion Daily Financial Bear 3x Shares (NYSE:FAZ) see heavy activity in the August 15 and August 16 calls. Given that they expire tomorrow, it reflects an expectation of a sharp drop in the very near term. (NYSE:FAZ) is up 6.71 percent to $15.91 as banks and financials head lower,” Chris McKhann Reports From Options Monster.

Direxion  Daily Financial Bull 3X ETF (NYSE:FAS) Visit Our (FAS) Category: HERE

ProShares UltraShort QQQ fund (NYSE:QID) Visit Our (QID) Category: HERE

We have put together a snapshot of the options activity mentioned below:

ProShares UltraShort QQQ fund (NYSE:QID)

Call Options

Expire at close Friday, August 20, 2010

Strike Symbol Last Chg Bid Ask Vol Open Int 10.00 QID100821C00010000 7.77 0.00 7.70 7.90 2 2 13.00 QID100821C00013000 4.90 0.00 4.75 4.90 6 9 14.00 QID100821C00014000 3.25 0.00 3.75 3.90 10 134 15.00 QID100821C00015000 2.73 0.42 2.83 2.89 52 2,285 16.00 QID100821C00016000 1.77 0.46 1.83 1.89 236 1,259 17.00 QID100821C00017000 0.84 0.39 0.85 0.90 2,655 5,220 18.00 QID100821C00018000 0.13 0.06 0.13 0.14 3,200 6,676 19.00 QID100821C00019000 0.01 0.02 0.01 0.03 862 8,839 20.00 QID100821C00020000 0.01 0.00 N/A 0.01 14 3,018 21.00 QID100821C00021000 0.01 0.00 N/A 0.02 2 2,168 22.00 QID100821C00022000 0.01 0.00 N/A 0.02 1 1,723 23.00 QID100821C00023000 0.02 0.01 N/A 0.02 8 615 24.00 QID100821C00024000 0.01 0.00 N/A 0.02 3 761 25.00 QID100821C00025000 0.04 0.00 N/A 0.03 34 634 26.00 QID100821C00026000 0.05 0.00 N/A 0.03 24 176 27.00 QID100821C00027000 0.04 0.00 N/A 0.03 46 180 28.00 QID100821C00028000 0.04 0.00 N/A 0.03 34 276 29.00 QID100821C00029000 0.04 0.00 N/A 0.02 82 103 30.00 QID100821C00030000 0.04 0.00 N/A 0.03 80 107

Direxion  Daily Financial Bull 3X ETF (NYSE:FAS)

Call Options

Expire at close Friday, August 20, 2010

Strike Symbol Last Chg Bid Ask Vol Open Int 8.00 FAZ100821C00008000 6.70 0.00 7.00 8.20 3 28 9.00 FAZ100821C00009000 6.15 0.00 6.60 6.95 13 61 10.00 FAZ100821C00010000 5.85 1.05 5.60 5.95 96 820 11.00 FAZ100821C00011000 4.75 0.90 4.85 4.95 32 9,780 12.00 FAZ100821C00012000 3.80 0.90 3.85 3.95 687 3,896 13.00 FAZ100821C00013000 2.90 1.00 2.87 2.90 1,834 9,838 14.00 FAZ100821C00014000 1.90 0.95 1.87 1.90 3,812 8,337 15.00 FAZ100821C00015000 0.92 0.62 0.91 0.94 11,412 15,337 16.00 FAZ100821C00016000 0.29 0.21 0.28 0.29 9,706 14,818 17.00 FAZ100821C00017000 0.05 0.01 0.04 0.05 2,120 10,808 18.00 FAZ100821C00018000 0.01 0.00 N/A 0.01 522 7,960 19.00 FAZ100821C00019000 0.01 0.00 N/A 0.01 11 3,795 20.00 FAZ100821C00020000 0.01 0.00 N/A 0.01 51 11,661 21.00 FAZ100821C00021000 0.01 0.00 N/A 0.01 10 2,973 22.00 FAZ100821C00022000 0.01 0.00 N/A 0.01 10 2,562 23.00 FAZ100821C00023000 0.01 0.00 N/A 0.01 3 2,223 24.00 FAZ100821C00024000 0.03 0.02 N/A 0.01 39 3,214 25.00 FAZ100821C00025000 0.01 0.00 N/A 0.01 20 1,658 26.00 FAZ100821C00026000 0.01 0.00 N/A 0.01 67 3,224 27.00 FAZ100821C00027000 0.01 0.00 N/A 0.01 75 874 28.00 FAZ100821C00028000 0.01 0.00 N/A 0.01 5 2,194 29.00 FAZ100821C00029000 0.01 0.00 N/A 0.01 5 841 30.00 FAZ100821C00030000 0.01 0.00 N/A 0.01 50 1,164 31.00 FAZ100821C00031000 0.01 0.00 N/A 0.01 30 299 32.00 FAZ100821C00032000 0.01 0.00 N/A 0.01 90 202 33.00 FAZ100821C00033000 0.01 0.00 N/A 0.01 132 1,237 34.00 FAZ100821C00034000 0.01 0.00 N/A 0.01 68 353 35.00 FAZ100821C00035000 0.01 0.00 N/A 0.01 115 1,742

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NYSE:FAZ, QID