Mike Khouw Sees Unusual Options Activity In Best Buy

On CNBC's Options Action, Mike Khouw spoke about options activity in Best Buy Co Inc BBY. The call option trading volume on Monday was twice the average daily call options volume.

Khouw noticed that traders were selling the September 36 calls for $1.05. He believes that they have a long position in the name and they are selling calls because they believe that the upside is capped. The breakeven for the trade is at $37.05 at the September expiration and traders have a $1.05 of protection on the downside.