Mike Khouw Sees Unusual Options Activity In Walmart

Mike Khouw said on CNBC's "Options Action" that Walmart Inc WMT is seeing much more calls than puts trading over the course of the last couple of weeks, and on Tuesday, calls outpaced puts by more than 11 to 1. The reason for the huge increase in call volume was the launch of the Walmart Plus.

During the session there was a purchase of the September 25, $148 strike calls and it caught Khouw's attention. Traders paid around 70 cents for them, which means that buyers are hoping that the stock is going to trade above $148.70 or more than 8% above the closing price Tuesday.