Dan Nathan Sees Unusual Options Activity In Advanced Micro Devices

On CNBC's "Options Action", Dan Nathan spoke about an unusual options activity in Advanced Micro Devices, Inc. AMD ahead of earnings.

The company is going to report earnings Tuesday and the options market is implying a move of 10 percent in either direction on the event. Over the last four quarters, the stock has moved 15 percent on average on earnings. Nathan said call options volume was 2.5 times put options volume Monday and the most activity was in the weekly options.

See Also: What To Expect In AMD's Q4 Earnings Report

Traders were buying the February 2, 13.5 strike calls and puts. Nathan explained that this strategy is called a straddle and around 25,000 straddles were traded. He added that traders are expecting a bigger move than the implied move of 10 percent.