Dan Nathan Sees Unusual Options Activity In Ford

On CNBC's "Options Action", Dan Nathan spoke about unusually high options activity in Ford Motor Company F. The call options volume on Monday was five times higher than the put options volume and there was one large roll that took approximately a half of that volume.

A trader bought to close 14,000 contracts of the November 12 calls and she or he sold to open 14,000 contracts of the December 13 calls for 9 cents. Nathan believes the traders sold calls against a long position in the name. If the stock stays below $13 at the December expiration, the trader is going to collect the whole premium.