Mike Khouw Sees Unusual Options Activity In Occidental Petroleum

On CNBC's "Options Action," Mike Khouw said that Occidental Petroleum Corporation OXY traded over 90,000 call options contracts on Monday, which is more than two times the average daily call volume.

The most active contracts were the November $16 calls and the November $20 calls as 8,000 contracts and 12,000 contracts were traded respectively. Khouw explained that buyers are betting the selling pressure is over, but they're using options because they acknowledge that there is still some downside risk in the name.