Mike Khouw Sees Unusual Options Activity In HCA Holdings

On CNBC's Options Action, Mike Khouw said he noticed bearish options activity in HCA Holdings Inc HCA. The put options volume was three times higher than the average daily put options volume, although the stock closed the trading session in a positive territory.

Khouw said traders bought 3,000 contracts of the June 87.50/77.50 put spread for $2.50. The trade breaks even at $85 or 4.76 percent lower from the current stock price and it can make a maximal profit of $7.50, if the stock drops to $77.50 or lower. The total premium paid for the trade is $750.000. Khouw explained that the bearish activity was a reaction on the rumors that Congress would try to take another run at the healthcare reform. He added that this sector is going to be the most volatile, if there is going to be a change.