Mike Khouw Sees Unusual Options Activity In Tesla

On CNBC's "Options Action," Mike Khouw spoke about a bearish options activity in Tesla, Inc. TSLA. He said the short interest in the name is fairly close to its all-time highs, while the open interest in puts is mildly off its all-time highs.

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Khouw noticed during the trading session that somebody sold to close the June 210 puts and bought to open the May 185 puts. The trader bought 5,000 contracts of the May 185 puts for $2.45. The trade breaks even at $182.55 or around 11 percent from the closing price on Tuesday.