Mike Khouw Sees Unusual Options Activity In SLV

On CNBC's "Options Action," Mike Khouw said that iShares Silver Trust SLV saw more than five times the average daily call options volume traded on Monday. It normally trades around 500,000 contracts and on Monday it traded around 2.5 million contracts, explained Khouw.

Most of that activity was concentrated in the $30-strike calls, expiring at the end of this week, next week and also going out to March, said Khouw. Over 100,000 contracts of the March $30 calls were traded for $2.10. The trade breaks even at $32.10. There was also a lot of activity in silver futures options as the $35 strike calls were extremely busy.