Dan Nathan Sees Unusual Options Activity In Schlumberger

Dan Nathan spoke on

about unusually high options activity in

. The options volume was two times higher than the average daily options volume and the most active were the weekly January 78 puts as one trader bought 10,000 contracts. A trader paid $1.53 for the weekly January 78 puts, betting that the stock is going to trade to $76.47 or approximately 2 percent lower by Friday expiration.

is scheduled to report earnings on Thursday so this could be a hedge for a long position going into that event. Nathan added that the implied volatility in the name has risen close to its 52-week highs and options are becoming more expensive as traders are reaching for puts ahead of the event.