Dan Nathan Sees Unusal Options Activity In iShares Barclays 20+ Yr Treas.Bond (ETF)

On CNBC's Options Action, Dan Nathan analyzed a bearish options bet on iShares Barclays 20+ Yr Treas.Bond (ETF) TLT. The volume was three times higher than the average daily volume and the most of the action happened because somebody decided to roll his bearish position. A trader sold to close 40,000 contracts of the February 123 puts and bought 40,000 of the February 128 puts for $0.76. The premium paid amounts to $3 million and the break even for this trade is at $127.24 or approximately 5 percent lower from the current price of iShares Barclays 20+ Yr Treas.Bond (ETF). Nathan added that the implied volatility in the name has increased and he believes that this is a cheap bet that interest rates are going higher.