Dan Nathan Sees Unusual Options Activity In Zoetis Inc

, Dan Nathan spoke about unusually high options activity in

. The options trading volume was 40 times higher than the average daily options trading volume and there was a huge trade in the January 2017, 35 strike puts. Nathan explained that the puts looked like they were sold to open, which makes the trade bullish. Somebody sold 84,000 contracts of the January 2017, 35 strike puts for $1.25 and collected a premium of $10.5 million. The break even for the trade is at $33.75 or approximately 28 percent lower from the closing price on Monday. If

drops below $35 at the January 2017 expiration the trader is going to have to buy the stock at $35. Nathan sees this trade as a leveraged play for a existing long position.