Mike Khouw Sees Unusual Options Activity In Deutsche Bank

Mike Khouw spoke on CNBC's "Options Action" about a bearish options activity in Deutsche Bank AG (USA) (NYSE: DB). The put options volume was 10 times the average daily put options volume and most of that activity was concentrated in the August 7 puts.

Over 11,000 contracts of the August 7 puts were traded during the session on Thursday. Khouw noticed a block trade of 10,000 contracts that were purchased for 14 cents. He explained that the trade seems like a disaster protection, betting that the stock could lose almost 40 percent in less than 80 days.