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Mike Khouw Sees Unusual Options Activity In Morgan Stanley

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On CNBC's "Options Action", Mike Khouw spoke about a high options activity in Morgan Stanley (NYSE: MS) ahead of earnings.

The bank reports earnings on April 17 and the options market is implying a 3-percent move in either direction. On Tuesday the options volume was above average and Khouw noticed a purchase of 1,250 contracts of the April 46.5/44 1 by 2 put spreads for 50 cents.

Khouw explained that it looks like someone is rolling a position up to a $46.5 strike, but he also thinks that this might be a hedge for a long position.

Editor's note: Morgan Stanley Q1 EPS $1.39 beats $1.16 estimate, sales $10.29B beat $10B estimate

Posted-In: CNBC Mike Khouw Options ActionOptions Markets Media

 

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