Mike Khouw Sees Unusual Options Activity In Under Armour

Mike Khouw said on CNBC's "Options Action" that he saw more than four times the average daily call options volume in Under Armour Inc UAA on Thursday. The open interest has also more than doubled since April expiration.

The most of the activity on Thursday was in the January 2021, $10, $12.50 and $15 strike calls. A lot of that was repositioning, explained Khouw.

The one that saw the most opening activity was the January 2021, $12.50 call as over 11,000 contracts were traded for 70 cents. Khouw said this is a way to make a risk-managed bet to the upside as the options market is implying a move of more than 30%, higher or lower.