Mike Khouw Sees Unusual Options Activity In Oracle

Mike Khouw spoke on CNBC's "Options Action" about unusually high options activity in Oracle Corporation ORCL ahead of earnings results.

The company is going to report earnings on Wednesday and the stock usually moves 5 percent on earnings and that is approximately what the options market is implying. Khouw said that the most of the options flow in the name was bearish on Tuesday as traders were buying the June 30, 43 strike puts. They paid 25 cents for them, which sets the break even for the trade at $42.75 or 6.74 percent below the current stock price.