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Dan Nathan Sees Unusual Options Activity In The Technology SPDR ETF

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On CNBC's "Options Action", Dan Nathan spoke about an unusually high options activity in Technology Select Sector SPDR Fund (NYSE: XLK). During the session, put options were more active than calls and they outnumbered calls two to one.

When the stock was trading at $70, Nathan noticed a purchase of 5,000 contracts of the April 69/63 put spread for 87 cents. The trade breaks even at $68.13 or 2.56 percent below the current market price. The trade is going to reach its maximal profit of $5.13, if the stock drops to $63 or lower at the April expiration.

Posted-In: Dan Nathan Options ActionSector ETFs Options Markets Media ETFs

 

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