Mike Khouw Sees Unusual Options Activity In Weatherford International Plc

Mike Khouw spoke on CNBC's Options Action about bearish options activity in Weatherford International Plc WFT. The stock saw more than 8 times average daily put volume on Monday and the most active were the August 7 puts, said Khouw. A trader bought 11,000 contracts of the August 7 puts for $0.55, betting that Weatherford International Plc is going to trade at $6.45 or 36 percent lower at August expiration. Khouw added that the company carries a lot of debt and that it is currently trading close to its 2008-2009 lows.