Mike Khouw Sees Unusual Options Activity In FireEye

On CNBC's "Options Action," Mike Khouw said that cybersecurity stocks are on fire and FireEye Inc FEYE particularly.

He noticed that 50 times more calls than puts were traded in the name on Thursday and the call volume was 5 times the average daily call volume.

Most of that activity was concentrated in the May $11 and $11.50 strike calls, which expire next Friday. Buyers of these calls are betting that the stock is going to trade above $12 by the end of the next week, said Khouw.