Mike Khouw Sees Unusual Options Activity In Texas Instruments Incorporated

Mike Khouw spoke on CNBC's Options Action about unusually high options activity in Texas Instruments Incorporated TXN. He noticed that the put options volume was twice the daily average put options volume and the July 31 puts were the most active. Texas Instruments Incorporated is going to report earnings on July 22 and since the traders have been paying $2.08 for the July 31 weekly - 52.5 strike puts, they believe that the stock is going to decline at least 4 percent. Khouw added that people don't buy options just to break even, so buyers of these options must be expecting a higher decline in Texas Instruments Incorporated.