Dan Nathan Sees Unusual Options Activity In SPDR S&P Oil & Gas ETF

Dan Nathan spoke on the show about a bullish bet in

that caught his attention. Trading activity in options market was higher than usual as 1.5 times daily average volume was traded on Thursday in the name. When the stock traded at $47, a trader bought 14,500 contracts of the March 53 call options and sold the March 62 call options, paying $1.50 for the spread. The breakeven for this trade is at $54.50 and profit is capped at $62. Maximal gain for this trade is $7.5. Nathan added that this trading strategy is way out of the money as the stock closed the trading session on Thursday at $44.36.