Dan Nathan Sees Unusual Options Activity In Newmont Mining

Dan Nathan spoke on the show about an options trade he noticed in

. There was a higher than usual options activity in the name as two time daily average volume was traded and puts outnumbered calls three to one. The stock had a really good session, trading 6.85 percent higher and closing at $19.60. When it was trading at $19.15, a trader bought 12,500 contracts of the March 18 put options and sold 12,500 contracts of the March 16 put options, paying $0.67 for the spread. The trade breaks even at $17.33, or 12 percent lower from the current price, and maximal profit is $1.67. Nathan commented that he is not sure why would anyone sell a put and limit profits in a trade like this one and his conclusion was that the reason might be in increased implied volatility in the name.