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 LYFT on Tuesday, a day ahead of the earnings release.

Khouw said that options traders were bullish on Lyft and Uber Technologies Inc 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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