Mike Khouw Sees Unusual Options Activity In FedEx

On CNBC's "Options Action," Mike Khouw said options traders seemed to favor calls over puts by about two to one over the last 20 days in FedEx Corporation FDX and it was even more than that on Wednesday.

The company is going to report earnings on Thursday and the options market is implying a move of 6.25% in either direction. Over the last eight quarters, the stock moved 8.1% on the event.

Most of the activity on Wednesday was concentrated in the March $280 calls. Traders were paying around $3 for those, which sets the breakeven at $283 or around 6.5% higher at the March expiration.