Mike Khouw Sees Unusual Options Activity In Time Warner

Speaking on CNBC's "Options Action", Mike Khouw said he was watching the change in the open interest of the media stocks on Thursday. He added that Time Warner Inc TWX had the biggest change in open interest among them.

The open interest in the October 105 calls in Time Warner increased on Thursday from 25,000 open contracts to almost 30,000. Khouw explained that the options traders are betting that the stock is going to trade above $106 at the October expiration.