Mike Khouw Sees Unusual Options Activity In Market Vectors Gold Miners ETF

Mike Khouw said on CNBC's Options Action that the options trading volume in Market Vectors Gold Miners ETF GDX on Tuesday was two times higher than the average daily options trading volume.

He noticed during the trading session that someone purchased 20,000 contracts of the May 20 puts for $0.23. The breakeven for the trade is at $19.77 or 15 percent lower from the current stock price. Khouw added that Newmont Mining Corp NEM reports earnings on Wednesday and Barrick Gold Corporation (USA) ABX reports next week.