Mike Khouw Sees Unusual Options Activity In Best Buy

On CNBC's Options Action, Mike Khouw spoke about unusually high options activity in Best Buy Co Inc BBY on Tuesday. The stock jumped 19.60 percent and options volume was 10 times higher than the average daily volume.

Khouw noticed during the trading session that there was an institutional buyer of 1,000 contracts of the October 40 calls for $1. The trade breaks even at $41 or 4.51 percent higher at the October expiration. He added that the trade is a good bet, because it costs only 2.5 percent of the stock price and after a big move that happened on Tuesday, the stock could easily move another 5 percent higher.