Mike Khouw Sees Unusual Activity In Texas Instruments

On CNBC's "Options Action," Mike Khouw said that Texas Instruments Incorporated TXN traded more than four times the average daily call volume on Tuesday. That was a result of a large trade in the September expiration calls.

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An options trader bought over 8,700 contracts of the September $120 calls, paying around $9 per contract for them. The trade breaks even at $129 or 5.16% above the closing price on Tuesday. Khouw explained that this is a big bullish bet as the trade would turn into around $105 million worth of stock.