Dan Nathan Sees Unusual Options Activity In iShares iBoxx $ High Yid Corp Bond (ETF)

Dan Nathan spoke on CNBC's Options Action about unusually high bearish options activity in iShares iBoxx $ High Yid Corp Bond (ETF) HYG. He said that put volume was four times higher than the call options volume and most of the put volume was made in one trade.

When the stock was trading at $82.70, there was a buyer of 22,500 contracts of the December 75 puts for $1.33. The trade breaks even at $73.67 or 1.78 percent lower.

Nathan added that implied volatility for iShares iBoxx $ High Yid Corp Bond (ETF) is pretty low and its options are cheap. Traders who are looking to play for a disaster later in a year, should consider buying puts in iShares iBoxx $ High Yid Corp Bond (ETF), thinks Nathan.