Dan Nathan Sees Unusal Options Activity In Nike Inc

Dan Nathan spoke on

about unusual options trading activity in

. The options trading volume was 1.5 times higher than the average daily volume and one trade caught Nathan's attention. Somebody sold 1,300 contracts of the January 88 puts for $1.50. Nathan explained that this trader is actually putting a limit order at $86.50. The company is going to report earnings on Thursday and implied volatility has increased, so it makes sense to make a bullish bet by selling options. It is interesting that the stock gaped higher in September at $87.30, which is close to the price of a break even for the trade.