Mike Khouw Sees Unusual Options Activity In Community Health Systems

On CNBC's "Options Action," Mike Khouw said Community Health Systems Inc 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.