Dan Nathan Sees Unusual Options Activity In Marathon Oil Corporation

On CNBC's Options Action, Dan Nathan analyzed options activity in Marathon Oil Corporation MRO.

Nathan said that options trading volume was three times higher than the average daily options volume and the most of the volume was in puts. When the stock was trading at $7.14, a trader sold 55,000 contracts of the April 5 puts for $0.28. If the stock trades above $5 at the April expiration, the trader is going to earn $1.5 million in premium. The trade starts to make losses below $4.72.