Dan Nathan's Micron Technology Trade

Speaking on CNBC's Options Action, Dan Nathan said that 7 times average daily volume was traded on Friday in Market Vectors Semiconductor ETF SMH. A trader bought 50,000 of the March 55 puts, but that doesn't necessarily means that this trader is making a bearish bet because he might be protecting a long stock position. Nathan added that Micron Technology, Inc. MU is a component of Market Vectors Semiconductor ETF and it has been a laggard in 2015. He explained that Greenlight Capital has decreased its position in the stock significantly and the momentum is weak. He would consider a bearish options strategy in the name. Specifically, Nathan would buy the April 31 put for $1.68 and sell the April 26 put for $0.38. He is paying for the put spread $1.30, which is his maximal risk and he can make a profit of $3.70. The break even for the trade is at $29.70 at the April expiration.