Mike Khouw Sees Unusual Options Activity In MGM Resorts

On CNBC's "Options Action," Mike Khouw spoke about unusually high options activity in MGM Resorts International (NYSE: MGM). He saw two times the average daily call volume on Tuesday, ahead of earnings, scheduled on Wednesday after the bell.

The options market is implying a move of 6.8% in either direction until the end of the week. The stock moved 4.8% on the event, over the last eight quarters.

Options traders continue to press their bullish bets, said Khouw. The most active options on Tuesday were the February $36 calls. Traders paid $1.40 for them, which sets the breakeven for the trade at $37.40 or 4.41% above the closing price on Tuesday.