Mike Khouw Sees Unusually High Options Activity In SPY

On CNBC's "Options Action," Mike Khouw spoke about an unusually high options activity in SPDR S&P 500 ETF Trust SPY. He noticed the put-call ratio was 0.5 on Thursday and he sees it as one of the signs of bullish sentiment. This means twice as many calls as puts were traded and one of the areas he saw that activity is the SPY.

Well over 100,000 contracts of the January 8, $380 calls were traded for 95 cents during the session on Thursday. Buyers of these calls are expecting the rally to continue. Khouw also noticed a decline in implied volatility as VIX is lower than it was a week ago.