Mike Khouw Sees Unusual Options Activity In United Continental

On CNBC's "Options Action", Mike Khouw said United Continental Holdings Inc UAL had more than three times average daily call options volume Tuesday.

He noticed increased activity in the Nov. 75 calls. Over 14,000 contracts of the Nov. 75 calls were traded for $1.12. The expiration captures earnings results and the trade breaks even at $76.12 or 12.4 percent above the current price. Khouw added the stock is currently trading well below its 52-week high.