Mike Khouw Sees Unusual Options Activity In Advanced Micro Devices

Mike Khouw spoke on CNBC's "Options Action" about unusually high options activity in Advanced Micro Devices, Inc. AMD. He said over one million calls traded in the name on Monday and over 100,000 contracts were traded in the August 31 weekly, 26 strike calls.

Traders were paying 80 cents for the August 31 weekly, 26 strike calls, which sets the breakeven for the trade at $26.80 or 6.1 percent above the closing price on Monday.