Mike Khouw Sees Unusual Options Activity In Philadelphia Gold and Silver Index

On CNBC's "Options Action," Mike Khouw spoke about unusually high options activity in Philadelphia Gold and Silver Index XAU.

It traded more than 10 times its average daily put volume on Tuesday and that was a result of one large trade. A trader bought 20,000 contracts of the Aug. 87.50 puts for $0.90. The trade breaks even at $86.60 or 6.11% below the current stock price.