Mike Khouw Sees Unusual Options Activity In Snap

On CNBC's "Options Action", Mike Khouw said that the options trading volume on Thursday in Snap Inc SNAP was two times the average daily options volume and the most active options were the July 16 puts.

Around 6,500 contracts of the July 16 puts were traded in total and 1,200 contracts were traded in a single print. A trader paid around $0.90 for them. The trade breaks even at $15.10 or 3.76 percent below the current stock price.

Khouw added that this expiration doesn't cover earnings results. The straddle that captures earnings costs $2.80, which means that the options market expects a move of around 18 percent in either direction.