Dan Nathan Sees Unusual Options Activity In General Electric

On CNBC's "Options Action", Dan Nathan spoke about unusually high options activity in General Electric Company GE. He said the total options volume was 2.5 times the average daily volume.

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There was one trade that caught Nathan's attention. A trader bought 10,000 contracts of the January 2019, 10 strike puts for $0.16. The trade breaks even at $9.84 or 45.03 percent below the current market price. Nathan believes this isn't a protection. He sees it as an implied volatility trade, because implied volatility might increase significantly in the name and push the value of the put option higher.