Mike Khouw Sees Unusual Options Activity In Twenty-First Century Fox

Mike Khouw said on the show that the options volume in

on Tuesday was 8 times higher than the average daily volume. The options market is expecting a move of 3.5 percent on earnings, which is due on May 6. Khouw added that most of the volume was caused by one large trade. Somebody bought 20,000 contracts of the January 42 call option for $0.50. The break-even for this trade is at $42.50 or approximately 25 percent higher than the current market price. It is also interesting that a year ago someone also bought 10,000 contracts of the same call options.