Mike Khouw Sees Unusual Options Activity In Deutsche Bank

Mike Khouw spoke on CNBC's "Options Action" about a bearish options activity in Deutsche Bank AG (USA) DB. The put options volume was 10 times the average daily put options volume and most of that activity was concentrated in the August 7 puts.

Over 11,000 contracts of the August 7 puts were traded during the session on Thursday. Khouw noticed a block trade of 10,000 contracts that were purchased for 14 cents. He explained that the trade seems like a disaster protection, betting that the stock could lose almost 40 percent in less than 80 days.