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