Mike Khouw Sees Potential Dividend Cuts In The Energy Space

On CNBC's Options Action, Mike Khouw spoke about potential dividend cuts in the energy space.

He said that the options market, looking out to mid-2017, is showing a potential 30 percent cut of a dividend yield for Exxon Mobil Corporation XOM.

Options are implying even bigger dividend cut for Chevron Corporation CVX over the same period. It could potentially decrease its dividend by 45 percent.

For ConocoPhillips COP the options market is forecasting a dividend cut of 50 percent by mid 2017.