Mike Khouw Sees Unusual Options Activity In American Express Company

CNBC Options Action's Mike Khouw noticed on Tuesday that more than two times average daily options volume was traded in American Express Company AXP. The top ten most traded options were calls. Khouw added that traders bought around 2,000 contracts of the February 27, 80 - strike calls for $0.70, betting that the stock is going to recover from the recent decline. The break even is at $80.70 or around 2 percent higher from the current price. Khouw believes that using call options is the right decision for traders who are trying to pick a bottom.