Mike Khouw Sees Unusual Options Activity In Gap

Mike Khouw spoke on CNBC's Options Action about unusually high options activity in Gap Inc GPS. He said that the weekly options, expiring this Friday, were very active as traders were buying the 18 strike calls.

Over 30,000 contracts of the May 18 calls were bought for $0.70 by midday and 15,000 contracts were traded since than. The traders who bought the May 18 calls for $0.70 are hoping that the stock is going to trade above $18.70 by the end of the week. Since they initiated the trade, the stock moved to $18.40.