Mike Khouw Sees Unusual Bearish Options Activity In Ford Motor

Mike Khouw spoke on CNBC's Options Action about bearish options activity in Ford Motor Company F. He noticed that puts outnumbered calls 3 to 1 on Thursday and the most of that anomaly happened because of one trade. Somebody bought 18,000 contracts of the May 14 puts for $0.06. The break-even for the trade is at $13.94 or 13 percent lower from the current stock price. Khouw added that it is interesting that the expiry covers earnings results, which are scheduled for April 28. Khouw explained that over the last 10 years Ford has moved around 14 percent during the time frame and the last time stock had a huge decline on earnings was three years ago, when it fell 19 percent.