Dan Nathan Sees Unusual Options Activity In Sunedison

Dan Nathan spoke on CNBC's Options Action about unusually high options activity in Sunedison Inc SUNE. The stock fell 33.88 percent on Tuesday and the options volume was 4.5 times higher than the average daily volume. Nathan noticed that a trader bought 10,000 contracts of the December 2 puts, 10,000 contracts of the December 1.5 puts and 10,000 contracts of the December 1 puts, paying $450.000 in premium. He explained that if the stock is above $2 in mid-December the trader is going to lose the premium. Nathan believes that the owners of Sunedison's debt could be behind the trade as they are trying to find a way to protect themselves from a potential bankruptcy.