Mike Khouw Sees Unusual Options Activity In Exxon Mobil

Mike Khouw spoke on CNBC's "Options Action" about unusual options activity in Exxon Mobil Corporation XOM. Calls outpaced puts in the name by about 5 to 1 on Monday and the most active options were the January 2020, $52.50 strike calls.

Over 13,000 contracts of the January 2020, $52.50 calls were traded for about $2.66, which sets the breakeven for the trade at $55.16 or around 31% above the current stock price. Khouw also said the options market is still forecasting a dividend cut as a significant possibility going into the new year.