Mike Khouw Sees Unusual Options Activity In Express Scripts

CNBC Options Action's Mike Khouw spoke on the show about unusually high options trading volume in Express Scripts Holding Company ESRX on Thursday. The stock closed the trading session 6.03 percent lower and Khouw noticed that put options volume in the name was 10 times higher than the average daily put options volume.

Khouw also noticed that a trader bought 3,500 contracts of the October 70 puts for $1.40. The trade breaks even at $68.60 or 4.58 percent lower from the current stock price. Khouw explained that the stock probably didn't fall just on the news about EpiPen allergy treatment.

He thinks it has other problems too, including its deal with Anthem Inc ANTM.