Dan Nathan Sees Unusual Options Activity In Electronic Arts

Dan Nathan spoke on CNBC's "Options Action" about an unusually high options activity in Electronic Arts Inc. EA. He said there was a lot of call options buying in the name for months and on Wednesday call options volume reached 5 times the average daily call options volume.

He noticed traders were selling upside calls and one trade caught his attention. There was a seller of 3,000 contracts of the November 150 call for $1.44. Nathan explained that traders were probably selling the longer dated calls, looking to buy closer dated calls to the money.