Dan Nathan Sees Unusual Options Activity In Energy Select Sector SPDR ETF

On CNBC's Options Action, Dan Nathan spoke about unusually high options activity in Energy Select Sector SPDR (ETF) XLE. Call options volume was three times higher than the put options volume and the largest call options trade happened in the morning session, when the stock reached its daily lows.

After the ETF traded lower, a trader decided to sell to close 30,000 contracts of the January 75 calls for $0.43. Nathan explained that it's likely that the trader is a prior bull, who doesn't believe any more that Energy Select Sector SPDR ETF can trade above $75. He added that the trader might be looking to buy a strike that is a little bit closer to the current stock price.