Mike Khouw Sees Unusual Options Activity In XLE

On CNBC's "Options Action," Mike Khouw spoke about high options activity in Energy Select Sector SPDR XLE. On Wednesday, calls outpaced puts 3 to 1 and the most of that activity was in the June $35 calls.

Around 20,000 contracts of the June $35 calls were traded and buyers were paying about $2.50 for them. The trade breaks even at $37.50 or 9.59% above the closing price on Wednesday.

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