Mike Khouw Sees Unusual Options Activity In United Technologies

On CNBC's "Options Action," Mike Khouw spoke about unusually high options activity in United Technologies Corporation UTX. The company is involved in a potential merger with Raytheon Company RTN and Khouw explained that the stock traded sharply lower when U.S. President Donald Trump raised his concerned about the deal.

See Also: Raytheon, United Technologies CEOs Respond To Merger, Trump's Concerns

Khouw noticed that options traders are still bullish. They were buying more calls than puts on Wednesday as calls outnumbered puts six to one. The most active calls were the June 124 calls. Around 3,300 contracts were traded and buyers were paying $2.42 for them. The trade breaks even at $126.42 or 1.89 percent above the closing price on Wednesday.