Dan Nathan Sees Unusal Options Activity In Amazon.com, Inc.

Dan Nathan spoke on

about a trade in

that caught his attention. He said that 1.5 times daily options volume was traded on Thursday and there was one particularly large trade in the name. A trader bought 7,000 contracts of the January 300 call option for $72, paying around $51 million in premium. Nathan believes that the trader is just replacing a long stock position with call options and defining the risk to $72. The break even for the trade is at $372 or approximately 17.5 percent higher from the current price. Nathan thinks that this is not a great strategy for retail investors, but it makes sense for those who are looking to add some volatility to portfolio.