Dan Nathan Sees Unusual Options Activity In Stitch Fix

On CNBC's "Options Action", Dan Nathan spoke about Stitch Fix Inc SFIX. He explained that the stock dropped around 35 percent Tuesday and options volume exploded, nearly matching the open interest coming into the day.

Nathan said he noticed one trade shortly after the open. There was a buyer of the March 30 puts for $4.60. The trade breaks even at $25.40 or around 12 percent below the current market price. Nathan thinks options traders are looking for a protection in the name.