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Mike Khouw Sees Unusual Options Activity In Chewy

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Mike Khouw spoke on CNBC's "Options Action" about unusually high options activity in Chewy Inc (NYSE: CHWY). The company is going to report earnings on Tuesday and the options market is implying a move of 13% in either direction.

There was a high call option activity on Monday and Khouw noticed that calls outpaced puts by 3 to 1. A trader bought 1,230 contracts of the June 12 expiration, $50 strike calls in Chewy. They were trading for $3.20, which sets the breakeven for the trade at $53.20 or around 9% above the closing price on Monday.

 

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Posted-In: CNBC Mike Khouw Options ActionOptions Markets Media