Mike Khouw Sees Unusual Options Activity In PayPal

Mike Khouw spoke on CNBC's "Options Action" about unusually high options activity in PayPal Holdings PYPL on Thursday. It traded more than three times its average daily call volume as 223,000 contracts were traded overall.

The most active options were the February 12, $300- strike calls, said Khouw. About 32,000 contracts were traded for around $2.60. Khouw said we can tell there was a lot of retail activity because the average trade size was five contracts. The stock needs to rise by more than 6% on Friday for these calls to be profitable, said Khouw.