Mike Khouw Sees Unusual Options Activity In Lyft Ahead Of Earnings

On CNBC's "Options Action," Mike Khouw spoke about LYFT Inc LYFT, which is due to report earnings Tuesday after the bell. The options market is implying a move of 8.4% in either direction by the end of the week and that is somewhat less than the 10% that the company has averaged the week it reported earnings.

Puts outtraded their average volume by about two times, but the most active options were the weekly $60-strike calls, said Khouw. Almost 5,800 contracts were traded for $1.20. Khouw said he sees some bullish sentiment for the stock ahead of earnings, but not as bullish as he has seen in past quarters. Right now, the options market is implying a 52% chance that the stock is higher by the end of the week, added Khouw.