Mike Khouw Sees Unusual Options Activity In Allergan plc

Mike Khouw spoke on

about unusually high options activity in

. He noticed that a trader paid $10.2 million in premium for 10,000 contracts of the August 210/230 call spread. The trader bought the call spread for $10.2 and the trade breaks even at $220.20 or 2.92 percent higher from the closing price on Monday. If the stock moves to $230 at the August expiration, the trade is going to make a maximal profit of $9.80. Khouw added that

is going to announce earnings on Tuesday and the stock moves around 7 percent on earnings, which is equal to the amount that the market is currently implying.