Mike Khouw Sees Unusual Options Activity In Lyft

On CNBC's "Options Action," Mike Khouw spoke about high options activity in Lyft Inc LYFT.

He said the company is going to report earnings next Wednesday and it seems that options traders are betting that Uber Technologies Inc UBER results are going to impact Lyft's share price. Uber reported earnings on Thursday.

Khouw said Lyft's call options volume was three times the daily average call options volume. The next week straddle is implying that Lyft could move 12.50% in either direction by the end of the next week, while this week's straddle implies a move of around 6%.

The most of activity on Thursday was in the August 7, $31/$32 call spread, said Khouw. Around 8,000 contracts were traded for a total cost of 51 cents.