Mike Khouw Sees Unusual Options Activity In Yahoo! Inc.

Mike Khouw spoke

about unusually high bullish options activity in

. He said that the options volume was two times higher than the average daily options volume and he noticed one big trade that caught his attention. Somebody bought 35,000 contracts of the July 50 calls for $3.50. The break even for the trade is at $53.50, which means that

has to trade around 16 percent higher at July expiration for the stock to be profitable. Khouw explained that the trader rolled a position in an attempt to buy more time for the stock to move higher and added that the previous position was opened in October when the stock traded around $40.