Mike Khouw Sees Unusual Options Activity In McCormick

On CNBC's "Options Action," Mike Khouw said that we don't usually see a tremendous options volume in McCormick & Company, Incorporated MKC, but it did pick up considerably on Monday. He saw about 20 times the average daily call volume.

The company is going to report earnings on Tuesday and the options market is implying a move of 4.1% in either direction, which is in line with 4% that it averaged over the last eight quarters. The most active options on Monday were the October $210 calls. Around 2,000 contracts were traded for $1.35, which sets the break even for the trade at $211.35 or 8.28% above the closing price on Monday.