Mike Khouw Sees Unusual Options Activity In Lowe's Companies, Inc.

, Mike Khouw spoke about bearish options activity in

. Put options volume was 10 times higher than the average daily put options volume in the first half of the session and the most active strike at the time was the May 70 put option. Traders were buying the May 70 puts for $1.48 and after the stock declined well below $70 they switched to the May 67.50 puts and the put options volume reached 20 times average daily put options volume. Khouw explained that traders are looking for more downside to come and it is interesting that the most traded options expire at May 15, which means that they will expire before the company posts earnings results.