Dan Nathan Sees Unusual Options Activity In This Biotech ETF

On CNBC's Options Action, Dan Nathan spoke about an options trade in SPDR S&P Biotech (ETF) XBI that he noticed on Monday.

Shortly after the opening, there was a buyer of 5,000 contracts of the October 63 puts for $1.84. The trade breaks even at $61.16 or 7 percent below the current price of the ETF.

Nathan added that it doesn't necessarily mean that this was a bearish bet. He thinks it could also be a hedge for a long biotech stocks portfolio.