Mike Khouw Sees Unusual Options Activity In iShares Russell 2000 Index (ETF)

, Mike Khouw spoke about a huge bearish options trade in

. The put options trading volume on Tuesday was two times higher than the average daily put options volume and Khouw noticed one big trade that stood out from the others. A trader bought 111,000 May 107/90 put spreads for $2.10, paying a total of $23.3 million in premium. The trade breaks even at $104.90 or 12.5 percent lower from the current price of the

. It can maximally make $14.90 or $165.39 million, if the stock drops to $90, which is 25 percent lower from the current price.