On CNBC's Options Action, Dan Nathan said that options trading volume in SolarCity Corp SCTY on Thursday increased significantly on the news that Elon Musk might take the company private. Options trading volume was 2.5 times higher than the average daily volume.
The largest trade of the day was a purchase of the April 25 calls for $2.10. The breakeven for the trade is at $27.10 at the April expiration or approximately 20 percent higher from the closing price on Thursday.
Nathan added that implied volatility of options in SolarCity is currently very high.
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