Mike Khouw Sees Unusual Options Activity In Intel

On CNBC's "Options Action," Mike Khouw said he saw an above average options volume in Intel Corporation INTC on Wednesday. Calls outpaced puts by about 2 to 1 and the options market is implying a move of 5.6% in either direction. Its average move, over the last 8 quarters, was 7.5%.

The most active options were the December $57.50 calls as over 13,000 contracts were traded, said Khouw. He added that around 3,000 contracts were sold for $1.24. He thinks that the proceeds were used to purchase put spreads to hedge a long stock position.

Intel is going to report earnings Thursday after the market close.