Dan Nathan Sees Unusual Options Activity In Salesforce

On CNBC's Options Action, Dan Nathan said that he noticed almost two times average daily options volume in salesforce.com, inc. CRM on Monday. Put options outnumbered calls 2 to 1. The company is going to report earnings results on Wednesday and the options market is implying a 6 percent move. A long-term average for the stock is 7 percent. Nathan added that there was a large trade that caught his attention in Monday's session. A trader bought 7,500 contracts of the March 57.50 puts for $0.77. The breakeven for the trade is at $56.73 or approximately 10 lower from the current price. The stock has been trading in a range between $55 and $65 for a better part of last year and currently it is close to the upper range. Nathan added that salesforce.com looks like it is going to break out so it is wise to make a short bet with options.