Dan Nathan Sees Unusual Options Activity In Square

On CNBC's "Options Action," Dan Nathan spoke about unusually high options activity in Square Inc SQ. The company is going to report earnings on Thursday and the options market is implying a move of 7% in either direction, which is in line with the average move over the last four quarters.

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Nathan said call options volume ran pretty hot on Wednesday as calls outnumbered puts 2 to 1. Nathan added that a lot of the volume was in the short-dated calls. The most active call option was the Aug. 82.50 call. Around 2,500 contracts were traded and investors were paying $2.40 for them. The trade breaks even at $84.90.

Square traded around $82.74 per share at time of publication.