Mike Khouw Sees Unusual Options Activity In Target

Mike Khouw spoke on CNBC's Options Action about bearish activity in Target Corporation (NYSE: TGT).He said that four times average daily put options volume was traded in Target even though its earnings won't be released until the November 19. The most active options were the November 59.5 puts and traders were paying $1 for them. The breakeven for this trade is at $58.50 and the buyers are making a bet that the stock could drop approximately 5 percent in three and a half weeks.Khouw added that traders might not be concerned just with the earnings report as delayed deliveries from Los Angeles port could be a major concern for Target, which is one of the largest importers through that port. Announced competition with Amazon.com, Inc. could also be a problem, thinks Khouw.