Mike Khouw Sees Unusual Options Activity In Facebook Inc

On CNBC's Options Action, Mike Khouw spoke about options trading activity in Facebook Inc FB, which is scheduled to report earnings on Wednesday. He noticed that call options outnumbered puts 2.5 to 1 on Tuesday. There was one particularly big trade that caught Khouw's attention. A trader bought 4,420 contracts of the April 84 calls for $2 each and sold 8,840 contracts of the April 87 calls for $1 each. The trader laid out no money to make a bullish bet that Facebook Inc is going to trade to $87 by the end of the week.