Dan Nathan Sees Unusual Options Activity In Advanced Micro Devices

Dan Nathan spoke on CNBC's Options Action about unusually high call options trading in Advanced Micro Devices, Inc. AMD. Call options volume was five times higher than the put options volume and the most active were the April expiration calls.

Nathan noticed that a trader sold to close 29,000 contracts of the April 7 calls and he or she bought to open 29,000 contracts of the April 10 calls for $1.09. The trade breaks even at $11.09 or 27.62 percent higher from the closing price on Tuesday. Nathan thinks a lot of things have to go right for Advanced Micro Devices in order for the stock to continue to trade higher.