Market Overview

Dan Nathan Sees Unusual Options Activity In Biotech ETF

Share:
Related XBI
Analyst: Trump's 'Naming And Shaming' Campaign To Build Pharma Headline Risk
Mergers, Acquisitions And A Tax Cut: Why This Biotech ETF Can Rebound
Trump set to sign "right to try" bill; biotechs rally (Seeking Alpha)

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: CNBC Dan Nathan Options ActionSector ETFs Media ETFs

 

Related Articles (XBI)

View Comments and Join the Discussion!