Dan Nathan Sees Unusual Options Activity In Oracle Corporation

Dan Nathan said on CNBC's Options Action that the noticed a big bearish options activity in Oracle Corporation ORCL after the stock declined on the news of a lawsuit related to its cloud computing business. Options volume was 7.5 times higher than the average daily volume and when the stock was trading near the lows of the day, Nathan noticed a purchase of 2,000 contracts of the September 37 puts for $1.32. The trade breaks even at $35.68 or 7.71 percent lower from the closing price on Thursday. Nathan showed on the daily 5-year chart a bearish head and shoulders pattern and he thinks that the trader who bought puts is looking for protection for his long position.