Mike Khouw Sees Unusual Options Activity In Virgin Galactic

On CNBC's "Options Action," Mike Khouw said Virgin Galactic Holdings Inc (NYSE: SPCE) is a speculative stock that typically trades around 100,000 options contracts per day. On Wednesday it traded three times that amount.

The most active options were the December $28 calls. Around 16,000 contracts were traded for $1, which sets the breakeven for the trade at $29 or around 28% above the closing price on Wednesday.