Mike Khouw Sees Unusual Options Activity In Booking Holdings

On CNBC's "Options Action," Mike Khouw spoke about Booking Holdings Inc BKNG ahead of its earnings report.

The company is going to report earnings on Thursday and Khouw explained that it moved 7 percent on average on the last eight quarters. The options market is currently implying a move of 6.5 percent.

The flow was fairly bearish on Wednesday, said Khouw. One trade caught his attention and it was a purchase of 200 contracts of the May 10, 1,660/1635 put spread for $5.78. The trade breaks even at $1,654.22 or 5.56 percent below the current market price. The maximal profit for the trade is $19.22.