Mike Khouw Sees Unusual Options Activity In Ford

On CNBC's "Options Action," Mike Khouw spoke about unusually high activity in Ford Motor Company F on Wednesday.

The company is due to report earnings on Thursday after the market close, and the options market is implying a move of 8% in either direction. Its average move for the event is 5.75%.

Most options traders seem to be betting the stock is going to move higher, as calls outpaced puts by more than 5 to 1 on Wednesday. The most active options were the February 5, $11.50 calls. Around 25,000 contracts were traded for 28 cents, which sets the break-even at $11.78.