Dan Nathan Sees Unusual Options Activity In The China ETF

On CNBC's Options Action, Dan Nathan spoke about unusually high options trading volume in iShares FTSE/Xinhua China 25 Index (ETF) FXI. The options trading volume in the name was two times higher than its average daily volume and put options volume was 1.5 times higher than the call options volume.

When iShares FTSE/Xinhua China 25 Index (ETF) was trading at $39.33, there was a buyer of 10,000 contracts of the November 34 puts for $0.89. The trade breaks even at $33.11 or 15.83 percent lower from the closing price on Thursday. Nathan believes that the trade could be a protection for a long stock position.