Mike Khouw Sees Unusual Options Activity In Nabors Industries Ltd.

On

, Mike Khouw said that

had more than three times average daily call volume on Tuesday. The December 20 strike was among the most active and the traders were paying $0.50 for it. For this trade to be profitable, at the December expiration, the stock has to trade above $20.50, or approximately 22 percent higher. Khouw added that traders are rather buying options in stocks that trader lower because of struggling commodity prices, than trying to buy stocks and catch a falling knife. Karen Finerman commented that the sell off in the energy space is overdone.