Mike Khouw Sees Unusual Options Activity In XLF

On CNBC's "Options Action," Mike Khouw spoke about unusually high options activity in Financial Select Sector SPDR Fund XLF.

Khouw noticed a big put spread trade in the name as over 44,000 contracts of the June 27/24 put spread were traded for around 42 cents. The trade breaks even at $26.58 and it can maximally make a profit of $2.58. Khouw added that this could be a hedge for a long position because the lower strike of $24 is the price level Financial Select Sector SPDR Fund had on the beginning of the year.