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Dan Nathan Sees Unusual Options Activity In Salesforce

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On CNBC's "Options Action," Dan Nathan spoke about unusually high options activity in Salesforce.com, inc. (NYSE: CRM). He said there was a lot of rolling activity on Monday as traders were rolling out from higher strike calls and rolling them down to strikes that are closer to the money. Calls were more active than puts on Monday as they outnumbered them three to one.

The company is going to report earnings on Tuesday and the options market is implying a move of 5.5 percent in either direction. Its average move over the last four quarters was 4.25 percent.

See Also: Uber Options Traders Make Aggressive Bullish Bets On Near-Term Bounce

The largest trade of the day was a purchase of 7,000 contracts of the September 150 calls for $11.50. The trade breaks even at $161.50 or 11.30 percent above the current stock price. Nathan explained that prior to the purchase, the trader sold to closed 7,000 contracts of the September 155 calls.

Posted-In: CNBC Dan Nathan Options ActionOptions Markets Media

 

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