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Mike Khouw Sees Unusual Activity In Lyft Ahead Of Earnings

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Mike Khouw Sees Unusual Activity In Lyft Ahead Of Earnings

Mike Khouw spoke on CNBC's "Options Action," about a bearish options activity in Lyft Inc (NASDAQ: LYFT) on Tuesday, a day ahead of the earnings release.

Khouw said that options traders were bullish on Lyft and Uber Technologies Inc (NYSE: UBER) last week, before Uber's earnings. But the sentiment has changed and on Tuesday, puts outnumbered calls by about 3 to 2.

The options market is implying a move of about 11% in either direction, which is slightly above its average move of 10% for the event. The most active options were the August 14, $30 puts, said Khouw. Over 2,500 contracts were traded for about $1.35. The trade breaks even at $28.65 or around 6.5% below the closing price on Tuesday.

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