Dan Nathan Sees Unusal Options Activity In Bed Bath & Beyond Inc.

Dan Nathan spoke on

about unusually high options activity in

on Monday. He said that the options volume in the name was five times higher than the daily average and the options market is implying a 7 percent one day move after earnings report on Wednesday night. There was one particularly large trade in the April weekly expiration. A trader sold 2,500 of the April 81/73 strangle. The trade involved a sale of the April 81 calls and the sale of the April 73 puts. The collected premium was $2 and the trader is hoping for the stock to be trading between $83 and $71 at the expiration. Nathan added that

missed on its last earnings report and the stock lost 10 percent. He thinks that the trader is selling options because implied volatility is high and the stock has been trading in a range lately.