Dan Nathan Sees Unusual Options Activity In Delta Air Lines, Inc.

, Dan Nathan spoke about options activity in

. The stock traded 5.07 percent higher on Wednesday and call options volume was 2.5 times higher than the put volume, but the largest trade of the day was a block of puts. When the stock was trading around $45 there was a buyer of 2,700 contracts of the March 39 puts for $2.40. This trade breaks even at $36.60 or approximately 20 percent lower than the current price of

. Nathan thinks that the choice of $39 strike put is interesting because there is a big support at $40. He added that this could be a protection for a long stock position. Nathan showed a chart of implied volatility for

and said that implied volatility was significantly higher during the Ebola scare last fall, so the trader might be thinking that current implied volatility level for

is low in comparison to the rest of the market.