Dan Nathan Sees Unusual Options Activity In The Technology SPDR ETF

On CNBC's "Options Action", Dan Nathan spoke about an unusually high options activity in Technology Select Sector SPDR Fund XLK. During the session, put options were more active than calls and they outnumbered calls two to one.

When the stock was trading at $70, Nathan noticed a purchase of 5,000 contracts of the April 69/63 put spread for 87 cents. The trade breaks even at $68.13 or 2.56 percent below the current market price. The trade is going to reach its maximal profit of $5.13, if the stock drops to $63 or lower at the April expiration.