Dan Nathan Sees Unusal Bearish Options Activity In Alibaba Group Holding Ltd

Dan Nathan spoke on

about unusually high bearish options activity in

. Put options volume was 4 times higher than the average daily put volume and a lot of it was achieved in out of the money puts. When the stock was trading at its new all time low, at $76.21, there was a buyer of 12,000 contracts of the September 50 puts. The trader paid $0.15 for them which sets a break even for the trade at $49.85, or 36 percent lower from the current stock price. Nathan added that this probably is not a protection for a long stock portfolio because it is not a good idea to protect a position with far out of the money options.