Mike Khouw Sees Unusual Options Activity In Market Vectors Oil Services ETF

, Mike Khouw spoke about a bearish options trade that he noticed in

on Wednesday. The options trading volume was approximately 4 times higher than the average daily volume and Khouw explained that the action was unusually large because an institutional trader decided to roll out a bearish trade opened back in December. The trader sold to close 20,000 contracts of the February 34 puts and bought 30,000 contracts of the April 30 puts for $1.25. For this trade to be profitable

would have to trade to $28.75 or 15 percent lower at the April expiration.