Mike Khouw Sees Unusual Options Activity In Silver Futures

On CNBC's "Options Action," Mike Khouw said he saw above-average volume in the September Comex silver futures contract on Monday as well over 4,000 contracts were traded overall. Calls outpaced puts by about 17 to 1.

The most active contracts were the September $31 calls. Around 1,300 contracts were traded for 11 cents, which sets the breakeven for the trade at $31.11 or around 18% above the current underlying price. Khouw said the volume of 1,300 represents, notionally, more than the top three most active contracts in iShares Silver Trust SLV.