Mike Khouw Sees Unusual Options Activity In DraftKings

On CNBC's "Options Action," Mike Khouw said he saw more than two times as many calls as puts traded in DraftKings Inc DKNG on Thursday and that has been the situation for the last couple of weeks.

The company reports earnings on Friday, before the market opens, and the options market is implying a move of 9% in either direction. The most active options were the November 13, $45 strike calls. Buyers were paying 70 cents for them, which sets the breakeven at $45.70 or around 11% above the closing price on Thursday.