Mike Khouw Sees Unusual Activity In FedEx

Mike Khouw spoke on CNBC's "Options Action" about unusually high options activity in FedEx Corporation (NYSE:FDX).

The stock traded sharply lower on Wednesday and Khouw saw well over 10 times the average daily options volume in the name.

See Also: FedEx Delivers Pain To Shareholders, But Some Analysts Are Shipping Support

The most active were the Sept. $151 puts as around 10,000 contracts were traded on Wednesday morning. Traders paid $2.25 for them, which sets the breakeven for the trade at $148.75 or around 1.14% below the stock price.

Khouw had a long position in the name before the earnings, but he decided to close 80% of his position after the stock traded sharply lower.