On CNBC's "Options Action," Mike Khouw spoke about Booking Holdings Inc BKNG ahead of its earnings report.
The company is going to report earnings on Thursday and Khouw explained that it moved 7 percent on average on the last eight quarters. The options market is currently implying a move of 6.5 percent.
The flow was fairly bearish on Wednesday, said Khouw. One trade caught his attention and it was a purchase of 200 contracts of the May 10, 1,660/1635 put spread for $5.78. The trade breaks even at $1,654.22 or 5.56 percent below the current market price. The maximal profit for the trade is $19.22.
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