Mike Khouw Sees Unusual Options Activity In Exxon Mobil

On CNBC's "Options Action", Mike Khouw spoke about an unusually high options volume in Exxon Mobil Corporation XOM. Calls outnumbered puts on Thursday 2 to 1 and that was largely a result of one big trade.

A trader purchased 1,500 contracts of the January 69 and sold 3,000 contracts of the January 73 calls for a total cost of $0.65. The trade breaks even at $69.65 or 1.03 percent above the current price and if the stock jumps to $73 at the January expiration, it can maximally make a profit of $3.35. Above $73, the profit decreases and the trade starts to lose money above $76.35.