Mike Khouw Sees Unusual Options Activity In Alphabet

On CNBC's "Options Action," Mike Khouw spoke about unusually high options activity in Alphabet Inc GOOGL GOOG. He said that Alphabet traded well over two times its average daily call volume on Thursday and calls outpaced puts by 4 to 1.

During the session, Khouw noticed a purchase of 2,500 contracts of the July $1,600 calls. They expire next Friday and traders were paying around $4 for them. The trade breaks even at $1,604 or 5.62% above the closing price on Thursday.