Mike Khouw Sees Unusual Options Activity In Apple

Apple Inc. AAPL reports earnings on Thursday after the bell and Mike Khouw said on CNBC's "Options Action" that the options market is implying a move of over 6% in either direction, which is larger than the average move of just over 5% over the last eight quarters.

Although the sentiment was mixed during the session on Wednesday, the most active options were the May 1, weekly, $280 strike puts, said Khouw. Traders were paying $3.12 for them, which sets the break even for the trade at $276.88 or 6.55% below the closing price on Wednesday.

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