Dan Nathan Sees Unusual Options Activity In SPDR S&P Oil & Gas Explore & Prod. (ETF)

Dan Nathan spoke on CNBC's Options Action about an unusually high options activity in SPDR S&P Oil & Gas Explore & Prod. (ETF) XOP. He said that put options volume was 2.5 times higher than the call options volume, but one of the largest trades in the ETF was a purchase of calls.

Nathan explained that a trader bought 5,000 contracts of the February 17, 39.50 strike calls in SPDR S&P Oil & Gas Explore & Prod. (ETF) for $0.31. The trade breaks even at $39.81 or 1.61 percent above the closing price on Wednesday.