Market Overview

Dan Nathan Sees Unusal Options Activity In Yahoo!


Dan Nathan spoke on CNBC's Options Action about an unusually high options activity in Yahoo! Inc. (NASDAQ: YHOO).

Nathan explained that the call volume was two times higher than the put volume and the total volume was two times average daily options volume.

Nathan added that one trade caught his attention and it happened when the stock was trading around $42.57, after the opening. A trader bought to close 10,000 contracts of the November 45 call options and sold to open 10,000 contracts of the November 50 call options for $0.50. Nathan thinks that this is an overriding trade against the long position in the stock where the trader is trying to make 1 percent over the next six weeks or so.

The break even at $50.50 is pretty far away from the current price of $42.


Related Articles (YHOO)

View Comments and Join the Discussion!

Posted-In: CNBC Dan Nathan Options ActionMedia Trading Ideas