Dan Nathan Sees Unusal Options Activity In Bristol-Myers Squibb Co

Dan Nathan spoke on the show about unusually high options activity on a day when

gained 8.90 percent on positive study results for Opdivo. Nathan said that 4 times average daily options volume was traded in this name and calls outnumbered puts 2 to 1. One trade caught his attention and it was the largest trade in the name. A trader bought 7,500 contracts of the November 55 puts for $0.49, which sets the break even for this trade at $54.51. The trade followed a purchase of 150,000 stocks, so Nathan sees it as a protection for a long stock position.

reached 13-year high on Thursday and implied volatility declined a little bit, making the price of options little cheaper. The trader probably decided to buy some protection if full data gets released in a week or so.