Mike Khouw Sees Unusual Options Activity in Financial Select Sector SPDR Fund

On CNBC's Options Action, Mike Khouw spoke about increased put options activity in Financial Select Sector SPDR Fund XLF on Monday. He said that the put options volume was 1.4 times higher than the call options volume and he noticed a bearish bet that caught his attention.

A trader bought 20,000 contracts of the January 19 puts for $0.67. The breakeven for the trade is at $18.33 or 4.8 percent lower from the current stock price.