Mike Khouw Sees Unusual Options Activity In Gap Inc

, Mike Khouw spoke about a bearish trade in

that happened on Monday. A trader made a $2 million bet that the stock is going to reach its 52-week low in a month. Put options trading volume was 10 times higher than the average daily put options trading volume and most of it happened in the September 34 and the October 32 puts. The trader sold to close September 34 puts, which was a successful trade, initiated in August and bought 18,000 contracts of the October 32 puts for $1.10. The break even for the trade is at $30.90 or approximately 4 percent lower at October expiration.