Mike Khouw Sees Unusual Options Activity In GLD

On CNBC's "Options Action," Mike Khouw said that calls significantly outpaced puts in SPDR Gold Trust GLD on Tuesday. The big call volume was the result of the purchase of the December $190/$200$/210 call butterfly for the net premium of 75 cents.

A trader bought 10,000 contracts of the December $190 calls, sold 20,000 contracts of the December $200 calls and bought 10,000 contracts of the December $210 calls. Khouw explained that the buyer is betting $750,000 that GLD could rise more than 12% by December expiration, targeting $200.