Mike Khouw Sees Unusual Options Activity In American Airlines

On CNBC's "Options Action", Mike Khouw spoke about unusually high options activity in American Airlines Group Inc AAL. He said the options volume on Wednesday was three times the average daily options volume and the May 38 calls were the most active as over 45,000 traded during the session.

Khouw noticed one trade on Wednesday. It was a purchase of a block of 9,000 contracts of the May 38 calls. Somebody paid $0.35 for the block. The trade breaks even at $38.25 or around 13.5 percent above the closing price on Wednesday.