Dan Nathan Sees Unusual Options Activity In The Semiconductor ETF

On CNBC's "Options Action", Dan Nathan spoke about unusually high bearish options activity in VanEck Vectors Semiconductor ETF SMH. Put options volume Wednesday was 7 times the average daily put options volume.

When the ETF was trading at $97, Nathan noticed a seller to close of 6,000 contracts of the December 8 expiry, 98.50 puts. The trader also bought to open 7,000 contracts of the December 15 expiry, 96 strike puts for $1.20. The trade breaks even at $94.80 or 2.76 percent below the current stock price.