Mike Khouw Sees Unusual Options Activity In Kinder Morgan

On

, Mike Khouw spoke about unusually high options activity in

. The call options volume was 8 times higher than the average daily call options volume and it was caused by one large trade. Somebody bought 50,000 contracts of the January 2017 50/60 call spread and paid $1 for it. The trade is going to pay off if the stock trades at least 17 percent higher in the next 21 months and the maximal gains will be reached if it trades approximately 40 percent higher. If

jumps to $60 at the expiration the trader is going to make a maximal profit of $9 per share.