Dan Nathan Sees Unusual Options Activity In IBM

On CNBC's "Options Action", Dan Nathan spoke about unusually high call options volume in International Business Machines Corp. IBM. He said the company is going to report earnings on Jan. 18 and the options market is implying a move of 3.5 percent in either direction. It moved 5 percent on the event over the last five quarters.

The most active calls on Wednesday were the January 170 calls. Around 4,500 were traded for $2.70, which sets the break even at $172.70 or 2.40 percent below the current market price.