Dan Nathan Sees Unusual Options Activity In American Airlines

On CNBC's "Options Action," Dan Nathan spoke about unusually high options activity in American Airlines Group Inc AAL. He said the stock dropped around 4.5 percent on Wednesday and options volume was two times the average daily options volume.

When the stock was trading at around $30, a trader bought the June 30 straddle for $2.31. The trader is betting that the stock is going to move $2.31 or around 8 percent in either direction. Nathan added that $30 was a strong support level recently.