Dan Nathan Sees Unusual Options Activity In Nike Inc

On CNBC's Options Action, Dan Nathan spoke about unusually high options activity in Nike Inc NKE. He said that options volume in the name was 3 times higher than the average daily volume and calls outnumbered puts 3 to 1. When the stock was trading at $64.50, Nathan noticed an unusually large trade. A trader bought the March weekly ratio 65/67.50 call spread for $0.27. He is buying one March 65 call and selling two March 67.50 calls. The trade breaks even at $65.27 and it can maximally make $2.23, if the stock jumps to $67.50. Above $67.50 the profit starts to decrease and the trade starts to lose money above $69.73.