Dan Nathan Sees Unusual Options Activity In IBM

On

, Dan Nathan spoke about the trading action in

, which broke out on Monday morning on false rumor that Carl Icahn has

the stock. Nathan said that two times average daily options volume was traded on Monday and the most active were the November weekly 165 call options, which opened the session at $0.10 and at one point reached $0.55, but returned to $0.10 as soon as the rumor proved to be false. Instead of gambling on the weekly options, Nathan thinks that traders who want to make contrarian bets in IBM should use longer dated options.