Mike Khouw Sees Unusual Options Activity In VIX

On CNBC's Options Action, Mike Khouw spoke about unusually high options activity in CBOE Volatility Index.

He said that the call options volume on Wednesday was two times higher than the put options volume and he also noticed a big call options trade on Wednesday. A trader bought 13,000 contracts of the November 23 calls for $1.93. The breakeven for the trade is at $24.93 at the November expiration.

Khouw explained that the VIX futures curve is similarly shaped. Not much volatility is expected until November, when it increases.