Dan Nathan Sees Unusual Bullish Options Activity In Twitter

On

, Dan Nathan spoke about bullish options activity in

. He said that total options volume was 2.5 times higher than the average options volume and calls outnumbered puts 3 to 1. Just before the noon the news came out that somebody is trying to buy

and the stock traded significantly higher, but it turned out that the news was fake. Prior to the event, Nathan noticed a large trade in the name. There was a buyer of 3,000 contracts of the August 38 call options for $1.78. The trade breaks even at $39.78. Nathan has a long position in Twitter and he is disappointed by the number of sellers that appeared after the stock jumped to $39. He thinks that investors are getting a little bit frustrated because except from the rally on Tuesday, it looks to him that the stock has a lot of traders that are interested to sell and he might sell at the next rally, too.