Dan Nathan Sees Unusual Options Activity In PowerShares QQQ Trust

Speaking on CNBC's "Options Action", Dan Nathan said he noticed a big put options activity in PowerShares QQQ Trust, Series 1 (ETF) QQQ Thursday. He finds the high put volume interesting, because the stock is trading close to its 52-week highs.

Shortly after the opening, put volume started picking up and by the end of the day it outnumbered call volume 1.5 to 1. Nathan noticed that 76,000 contracts of the January 2019, 135 strike puts were bought for $6.60 during the trading session. The trade breaks even at $128.40 or 13.11 percent lower. Nathan believes that the trade is a hedge against a long portfolio of major tech stocks.