Mike Khouw Sees Unusual Options Activity In Intel

On CNBC's "Options Action", Mike Khouw spoke about unusual options activity in Intel Corporation INTC ahead of earnings. He said over 100,000 call options contracts were traded which is more than double its daily average call volume.

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The options market is implying a move of 5 percent in either direction on earnings and it usually moves 4.5 percent on the event. During the session, Khouw noticed somebody sold 5,000 contracts of the February and the April calls to buy 10,000 contracts of the July 52.50 call for $1.85. The trade breaks even at $54.35 or more than 13 percent above the current stock price.