Dan Nathan Sees Unusual Options Activity In Whole Foods

Dan Nathan said on CNBC's Options Action that call options volume in Whole Foods Market, Inc. WFM was 7 times higher than the average daily volume on rumors of a possible takeover by Kroger Co KR.

The most of the volume was in the October expiration calls and the largest trade of the day was the purchase of 2,600 contracts of the October 31 calls for $0.52. The trade breaks even at $31.52 or 7.3 percent higher from the closing price on Thursday. Nathan added that the timing of the rumors is pretty suspect and he wouldn't chase the stock.