Mike Khouw Sees Unusual Options Activity In Community Health Systems

On CNBC's "Options Action," Mike Khouw said Community Health Systems Inc (NYSE: CYH) saw five times as many calls as puts traded on Tuesday and right now the options market is implying a move of 25% in either direction by the end of the year.

The most active options were the November $10.50 calls, which traded for about 90 cents. Some of that action could have been profit taking, given the stock rose and then fell 10% on Tuesday, explained Khouw. He added the options market might be expecting a little bit of a pause before we see some of the volatility that led us here.