Dan Nathan Sees Unusual Options Activity In Freeport-McMoRan

On CNBC's "Options Action", Dan Nathan spoke about high call options activity in Freeport-McMoRan Inc FCX. He said that calls outnumbered puts 2 to 1 on a day when the stock reached its new 52-week high.

The largest trade in the name was the purchase of 5,000 contracts of the January 17.50 puts for 26 cents. The trade breaks even at $17.24 or 7.76 percent below the current market price. Nathan believes this trade is a short-term protection for a long stock position.