Mike Khouw Sees Unusual Options Activity In XRT

Mike Khouw spoke on CNBC's "Options Action" about unusually high options volume in SPDR S&P Retail XRT. He said the call options volume in the name was well over 10 times the average daily call options volume.

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The most active were the September $40 calls. Somebody paid 25 cents for 20,000 contracts, said Khouw. The trade breaks even at $40.25 or 0.55% above the current stock price. Khouw explained that this is a very short-term bet on a sector that hasn't performed well lately. He sees these options as fairly priced.