On CNBC's Options Action, Dan Nathan said that he noticed an unusually high options trading activity in Dollar General Corp. (NYSE: DG). Total volume was three times average daily volume and the most active were the November 67.50 call options, with 25,000 traded contracts.
Traders paid a premium of $0.95 for this trade which means that they see the stock above $68.45 at the expiration. Dollar General Corp. is currently trading approximately 9.5 percent below the breakeven for this trade and Nathan can't see a scenario that would lift the stock price 10 percent higher. He thinks that relatively low implied volatility might be the reason behind the trade.
Posted-In: Dan Nathan Options ActionCNBC Options Markets Media
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