Dan Nathan spoke on CNBC's Options Action about a bearish options trade in General Electric Company GE that caught his attention on Monday.
He explained that put options volume in the name was four times higher than call options volume and the most of the options trading volume on Monday was recorded with one trading strategy called "put stupid."
A trader bought 30,000 contracts of the March 26 put for $0.28 and 20,000 contracts of the April 26 put for $0.41. The breakeven for the first option is at $25.72 or 10.2 percent lower and the breakeven for the second option is at $25.59 or 10.65 percent lower.
Nathan believes that this trade could be a protection for a long stock position.
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