Dan Nathan Sees Unusual Options Activity In The Utilities ETF

On CNBC's Options Action, Dan Nathan spoke about unusually high options activity in Utilities SPDR (ETF) XLU. He said put options volume was three times higher than the call options volume on Thursday.

When Utilities SPDR (ETF) was trading at $51.65, there was a buyer of 20,000 contracts of the April 49 puts for $0.40. The trade trade breaks even at $48.60 or 5.96 percent lower.

Nathan added that implied volatility in Utilities SPDR (ETF) is low, so options are cheap and traders might be looking for protection.