Dan Nathan Sees Unusal Options Activity In Lumber Liquidators Holdings Inc

, Dan Nathan analyzed trading action in

after the company posted worse than expected earnings on Wednesday. The options volume was 10 times higher than the average options volume and Nathan noticed some bullish activity after the stock plunged 26.39 percent. When the stock was trading close to its lows a trader sold to close the May 55 puts for $8 and bought to open the May 55 calls for $5.50. Nathan added that the implied volatility in the name is around 75 percent, which is very high and it makes it very hard to make money on a directional bet with a long premium options strategy.