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Mike Khouw Sees Unusual Options Activity In Lyft

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Mike Khouw Sees Unusual Options Activity In Lyft

On CNBC's "Options Action," Mike Khouw spoke about high options activity in Lyft, Inc. (NASDAQ: LYFT) ahead of earnings.

He noticed on Tuesday, in the morning session, some bullish activity, but as the day progressed the sentiment turned bearish because of the news from California.

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Puts outnumbered calls two to one on Tuesday and the most active were the May 8, $26 strike puts, with over 4,000 contracts traded. Traders paid $1.15 for them, which sets the break even at $24.85 or 6.86% below the closing price on Tuesday.

The company reports earnings on Wednesday and the options market is implying a move of 12.5% in either direction. The move is inline with the stock's average move on earnings.

 

 

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