Dan Nathan Sees Unusual Options Activity In Delta Air Lines

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On
CNBC's Options Action
, Dan Nathan said that there was unusually high options activity in
Delta Air Lines, Inc.DAL
on Monday. The stock traded 4.04 percent higher and call options volume was four times higher than the average daily volume. When the stock was trading at $51.5 a trader sold to close 22,000 of the December 50 calls, which expire this week and used the proceeds to buy 45,000 contracts of the December 52.5 calls, which expire next week. The premium paid for the December 52.5 calls was $0.77 or a total of $3.5 million, which sets the breakeven for the trade at $53.27 or approximately 3 percent higher. Nathan explained that the trader is playing a big break out, targeting the Fed rate increase and a further decline in crude oil.
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Posted In: CNBCOptionsMarketsMediaDan NathanOptions Action
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