Mike Khouw Sees Unusual Options Activity In Oracle

On CNBC's "Options Action," Mike Khouw said he saw more than 2.5 times the average daily put volume on Monday in Oracle Corporation ORCL.

The company is going to report earnings on Tuesday after the market closes and the options market is implying a move of around 5% in either direction by the end of the week. That is in line with how much the stock moved over the last eight quarters.

Around 5,000 contracts of the June $78.50 were traded for 56 cents on Monday. The trade breaks even at $77.94 or around 5.7% below the closing price on Monday.