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Dan Nathan Sees Unusual Options Activity In SPDR EURO STOXX 50 ETF

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Dan Nathan spoke on CNBC's Options Action about unusually high options activity in SPDR EURO STOXX 50 ETF (NYSE: FEZ). He said the call options volume was two times higher than the put options volume and a total options volume was five times higher than the average daily options volume.

When the stock was trading at $36, a trader sold 20,000 contracts of the August 32 puts to buy 40,000 contracts of the August 39 calls for a total cost of $0.20. The trade is going to make money if the stock trades above $39.20 at the August expiration. If the stock drops below $32, the trader is going to have to buy the stock at $32.

Posted-In: Dan Nathan Options ActionCNBC Options Markets Media ETFs

 

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