Mike Khouw Sees Unusual Options Activity In Rockwell Collins

Mike Khouw spoke on CNBC's "Options Action" about unusually high options activity in Rockwell Collins, Inc. COL. He said that the call options volume was 6.5 times the average daily call options volume and the most active contract was the August 130 calls.

Around 1,500 contracts of the August 130 calls were traded for $1.60 on average. The trade breaks even at $131.60 or 3.56 percent above the current stock price. Khouw added that options premium has increased and he would sell calls in the name, against a long stock position.