Dan Nathan Sees Unusual Options Activity In Wal-Mart

On CNBC's Options Action, Dan Nathan analyzed the options trading activity in Wal-Mart Stores, Inc. WMT on Wednesday. The retailer caught his attention because its call options volume was 2.5 higher than its average daily call options volume.

Nathan also noticed a big trade in the name. There was a purchase of 20,000 contracts of the September 72.50 calls for $0.89. The trade breaks even at $73.39 or 1.60 percent higher from the current stock price. Nathan explained that the stock has recently dropped below its up trend line and since its analyst day is scheduled for October, it's a good idea for traders who want to take a long position to use options and define risk.