Dan Nathan Sees Unusal Bearish Options Activity In Alibaba Group Holding Ltd

Dan Nathan spoke on CNBC's Options Action about unusually high bearish options activity in Alibaba Group Holding Ltd BABA. Put options volume was 4 times higher than the average daily put volume and a lot of it was achieved in out of the money puts. When the stock was trading at its new all time low, at $76.21, there was a buyer of 12,000 contracts of the September 50 puts. The trader paid $0.15 for them which sets a break even for the trade at $49.85, or 36 percent lower from the current stock price. Nathan added that this probably is not a protection for a long stock portfolio because it is not a good idea to protect a position with far out of the money options.