Dan Nathan Sees Unusual Options Activity In Apple

On CNBC's Options Action, Dan Nathan spoke about unusually high options activity in Apple Inc. AAPL. He said that call options volume was 1.7 times higher than put options volume and when the stock was trading at $111.70, there was a big trade in the name.

Nathan noticed that a trader bought to close 12,000 contracts of the January 2017, 80 strike puts. He showed on a chart that that the stock is trading close to its downtrend line and he expects to see some consolidation after a recent move higher. Apple is going to report earnings on April 25 and Nathan wouldn't be surprised if the guidance fails to meet the expectations.