Mike Khouw Sees Unusual Options Activity In Applied Materials

On CNBC's "Options Action," Mike Khouw spoke about unusually high options activity in Applied Materials, Inc. AMAT ahead of the earnings report, which is scheduled for Thursday after the market close.

Get Started

Start Futures Trading Fast — with a $200 Bonus

Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection.

Get Started

The options market is implying a move of 4.8% in either direction, which is slightly higher than the average move of 4.2% over the last eight quarters. Calls outpaced puts by about 1.6 to 1 on Wednesday as around 1,800 contracts of the May $127 calls were traded for $1.16. The trade breaks even at $128.16 or 2.69% above the closing price on Wednesday.