Mike Khouw Sees Unusual Options Activity In SPY

On CNBC's "Options Action," Mike Khouw spoke about a possible impact of the U.S. election on the broad market. He looked at the SPDR S&P 500 ETF Trust SPY options and he saw the options market is implying a move of 2.5% in either direction by the end of Wednesday and 3.3% by the end of the week.

The most active options on Tuesday were the November 4, $330 puts as around 50,000 contracts were traded for $2.50 by midday. By the end of the day around 90,000 contracts were traded. Buyers of these puts are hoping that the SPY is going to close below $327.50 on Wednesday.