Dan Nathan Sees Unusual Options Activity In Valero Energy

On CNBC's Options Action, Dan Nathan spoke about unusually high bearish options activity in Valero Energy Corporation VLO on a day when the stock reached new 52-week high. Put options volume was 1.5 times higher than the average daily put options volume. One big trade caught Nathan's attention on Monday. Somebody bought 4,000 contracts of the July 10 weekly 65-strike puts for $0.90. These options expire on Friday and they break even at $64.10 or approximately 2 percent lower from the current price. Nathan explained that trades like this one are very dangerous because a trader has to get a timing and the direction right.