Mike Khouw Sees Unusual Options Activity In Home Depot

On CNBC's Options Action, Mike Khouw said he noticed unusually high options activity in Home Depot Inc HD. Call options volume was five times the average daily call volume and the May expiration options were the most active.

Khouw explained that somebody bought 25,000 contracts of the May 155 calls for $0.61 in Home Depot. The trade breaks even at $155.61 or approximately 5 percent above the current market price.