Dan Nathan Sees Unusual Options Activity In Chevron

Dan Nathan spoke on CNBC's "Options Action" about unusually high options activity in Chevron Corporation CVX. The total options volume was 1.5 times the average daily options volume.

After the announcement that the CEO is planning to step down, there was a large buy of the September 8, 105 strike puts for 90 cents. Around 10,000 contracts were traded and the break even for the trade is at $104.10 or 2.12 percent below the current market price.