Dan Nathan Sees Unusual Options Activity In Wal-Mart

CNBC Options Action's Dan Nathan spoke on the show about trading activity in options market in Wal-Mart Stores, Inc. WMT on Monday. He said that options volume was 4 times higher than average daily volume and 80 percent of the volume was in call options. There was a one big trade in the morning, when the stock was trading at $79.70. A trader bought 21,000 contracts of the January 82.50 call options and paid a premium of $0.64. The trade would be profitable if the stock trades above $83.14 or 4.5 percent higher on the January expiration. Nathan added that there are rumors that Bill Ackman is interested in Wal-Mart and traders who want to follow this rumor can use options to do so and define its risk.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date of Trade
ticker
Put/Call
Strike Price
DTE
Sentiment
Posted In: CNBCOptionsMarketsMediaTrading IdeasDan NathanOptions Action
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!