On CNBC's Options Action, Dan Nathan spoke about unusually high bearish activity in Exxon Mobil Corporation XOM. He said that put options volume was 10 times higher than the call options volume on a day when the stock fell 2.72 percent.
Nathan noticed that a trader bought 70,000 contracts of the April 70/60 put spread for a $1.05. The break even for this trade is at $68.95 or 13 percent lower from Thursday's closing price and the trader can maximally make $8.95, if the stock drops to $60. Total premium paid is $7.35 million and Nathan believes that it could be a protection for a long position in the name.
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