Mike Khouw Sees Unusual Options Activity In EEM

On CNBC's "Options Action," Mike Khouw said iShares MSCI Emerging Markets ETF EEM traded more than seven times the average put options volume on Wednesday and all of that was related to a very large block of puts that traded.

The December $49, $40 and $25 puts each traded just under 250,000 contracts, said Khouw. Someone was basically either shorting or putting a hedge on approximately $1.25 billion notionally of the emerging market exposure, explained Khouw.