Mike Khouw Sees Unusual Options Activity In Ford

On CNBC's "Options Activity," Mike Khouw said he saw quite a lot options activity in Ford Motor Company F on Thursday. With only 30 minutes to go, it traded more than three times the average daily options volume and it got to four times the average daily options volume by the end of the session.

A lot of activity was short-dated as traders were buying calls that expire on Friday. There was also a large purchase of the June $15 calls. Around 50,000 contracts were traded for 60 cents, which sets the breakeven for the trade at $15.60 or 4.84% above the closing price on Thursday.

Pete Najarian noticed unusual activity in Ford on May 21 and he bought calls. He has taken some off the table and he is probably going to take off more on Friday. He said that there is a little bit of activity in the $17 strike, but it is all short-term so he is expecting a pause in Ford. People are not showing in the options market that they are expecting more upside, said Najarian.