Mike Khouw Sees Unusual Options Activity In Taiwan Semiconductor Mfg. Co. Ltd. (ADR)

, Mike Khouw spoke about bearish options activity in

on Thursday. The put options activity was two times higher than the daily average and puts outnumbered calls 15 to 1. The most active were the July 25 puts and traders were paying $1.85 for them. The break even for the trade is at $23.15 or 6 percent lower from the current price at July expiration. Khouw said that it is interesting the the July 25 puts are slightly in the money which means that traders are interested in protection that kicks in immediately.