Mike Khouw Sees Unusual Options Activity In General Electric

On CNBC's "Options Action", Mike Khouw spoke about a possible dividend cut in General Electric Company GE. He said the options market is suggesting that there's at least 50 percent probability of a dividend cut by September 2019 and possibly earlier.

He has also noticed some call options buying in the name on Wednesday. Over 20,000 contracts of the November 13 calls were traded for 37 cents. The trade breaks even at $13.37 or 7.13 percent above the Wednesday's closing price.