Dan Nathan Sees Unusual Options Activity In General Electric

Dan Nathan spoke on CNBC's "Options Action" about a high options activity in General Electric Company GE. The company is going to report earnings Wednesday and the options market is implying a 5 percent move in either direction for the event. The 10-year average one day move has been around 3 percent and over the last two quarters, the stock moved 2.25 percent.

The most active options in the name were the January 16 strike, weekly puts. Around 42,500 contracts were traded for an average price of $0.15 and around 20,000 contracts were bought to open. Buyers are expecting that the stock is going to drop below $15.85 at the Friday expiration, which is more than 6 percent below the current market price.