Mike Khouw Sees Unusual Options Activity In Macy's

On CNBC's "Options Action," Mike Khouw spoke about unusually high options activity in Macy's Inc M. He said that calls outnumbered puts three to one on Thursday and he noticed one big options trade in the name.

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Khouw noticed a purchase of 1,000 contracts of the Sept. $16 calls for 15 cents. The trade breaks even at $16.15 or 3.8% above the current stock price. Khouw explained that this trader is playing for a short-term bounce, committing a small amount of capital.