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Dan Nathan Sees Unusual Options Activity In iShares Russell 2000 Index

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On CNBC's "Options Action", Dan Nathan spoke about an unusually high options activity in iShares Russell 2000 Index (NYSE: IWM). He noticed a big put options activity as put volume in the name was 1.5 times that of calls.

When the stock was trading at $142, a trader bought 7,500 contracts of the May 135 puts for $4.50. The trade breaks even at $130.50 or 8.68 percent below the closing price on Wednesday. Nathan explained that this could be an outright bearish bet, but it could also be a hedge for a portfolio of small-cap stocks.

 

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