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Dan Nathan Sees Unusual Options Activity In SolarCity

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Dan Nathan spoke on CNBC's Options Action about unusually high options activity in SolarCity Corp (NASDAQ: SCTY) on Wednesday. He explained that put options volume was 10 times higher than the average daily put volume and the largest trade of the day was a purchase of the October expiration puts.

A trader bought 2,000 contracts of the October 22 puts for $4.80. The breakeven for the trade is at $17.20 or 21.39 percent lower than the closing price on Wednesday. Nathan said that if the deal between Tesla Motors Inc (NASDAQ: TSLA) and SolarCity doesn't go through, the stock is going to trade much lower and he thinks that it is not a good idea to be long premium in a stock like SolarCity.

Posted-In: CNBC Dan Nathan Options ActionOptions Markets Media


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