Dan Nathan Sees Unusal Options Activity In Select Sector Financial Slct Str SPDR Fd

, Dan Nathan said that he noticed higher than usual options activity in

on Monday. He explained that there was a large call options volume and calls outnumbered puts 6 to 1. When the ETF was trading at $24.33 there was a buyer of 68,000 contracts of the April 24.50 call options. The trader paid $0.21 for the trade, which sets the break even at $24.71 or approximately 2 percent higher from Monday's close. Nathan added that eight of the ten top holdings of the ETF are going to report earnings results in April. He thinks that

is facing a big resistance at $25 and he believes that it won't be able to break above that price level. Nathan sees risk reward as decent because the trade risks $0.21 to make $0.30.