Mike Khouw Sees Unusual Options Activity In Barrick Gold

On CNBC's "Options Action," Mike Khouw said that calls outpaced puts by more than 2 to 1 on Thursday in Barrick Gold Corp GOLD, in a session with above average volume. The most of that activity was concentrated in the June calls.

Traders bought 3,600 contracts of the June 26 expiry, $26 strike calls for 95 cents. The trade breaks even at $26.95 or around 11% above the closing price on Thursday. A big block of puts was also traded during the day, but that wasn't a bearish bet because traders were buying to close open positions, explained Khouw.