Mike Khouw Sees Unusual Options Activity In The Consumer Staples ETF

On CNBC's "Options Action", Mike Khouw spoke about unusually high options activity in Consumer Staples Select Sect. SPDR (ETF) XLP. The put options volume on Thursday was twice the average daily put options volume.

During the session, one trade caught Khouw's attention. A trader bought 6,000 contracts of the March 57 puts and sold 9,000 contracts of the March 54 puts for a total cost of 45 cents. Khouw explained that the trader is looking for a decline in Consumer Staples Select Sect. SPDR ETF of more than 5 percent.