Dan Nathan Sees Unusual Options Activity In PowerShares QQQ Trust, Series 1 (ETF)

Dan Nathan spoke on

about a trade in

that caught his attention on Monday. A trader decided to roll out his position and bought 25,000 contracts of the May 113 call options for $0.89, paying a premium of $2.3 million. The breakeven for this trade is at $113.89 or approximately 4 percent higher. Nathan explained that implied volatility has decreased recently and index ETFs have generally lower options prices than single stocks. He added that this is a good way to get some cheap implied volatility exposure to the upside and define your risk.