On CNBC's "Options Action", Dan Nathan spoke about unusually high options activity in General Electric Company GE. He said the total options volume was 2.5 times the average daily volume.
See Also: John Flannery Gives The Inside Story Of GE's Dividend Cut And More
There was one trade that caught Nathan's attention. A trader bought 10,000 contracts of the January 2019, 10 strike puts for $0.16. The trade breaks even at $9.84 or 45.03 percent below the current market price. Nathan believes this isn't a protection. He sees it as an implied volatility trade, because implied volatility might increase significantly in the name and push the value of the put option higher.
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