Mike Khouw Sees Unusual Options Activity In SPDR S&P Retail ETF

Mike Khouw spoke on CNBC's Options Action about unusually high options activity in SPDR S&P Retail (ETF) XRT.

Put options volume in the name was six times higher than the average put options volume and there was one big trade in the January expiration options.

An institutional trader bought 15,000 contracts of the January 45/42 put spread for $0.65. The trade breaks even at $44.35 or 3.61 percent below the current stock price. If SPDR S&P Retail (ETF) drops 8.72 percent to $42 at the January expiration, the trade is going to earn the maximal profit of $2.35.