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Dan Nathan Sees Unusual Options Activity In Biotech ETF

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Dan Nathan said on CNBC's "Options Action" that put volume was really high in SPDR S&P Biotech (ETF) (NYSE: XBI) on Thursday. Puts outnumbered calls 3 to 1 as there were several large trades.

When the stock was trading at $74.65, there was a buyer of 10,000 contracts of the September 74/68 put spreads. The trader paid $1.67 for them, which sets the break even for the trade at $72.33 at the September expiration. The trade is going to reach its maximal profit of $4.33, if the stock drops to $68 or lower.

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

 

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