Mike Khouw Sees Unusual Options Activity In Alibaba

On CNBC's "Options Action," Mike Khouw said calls outpaced puts in Alibaba Group Holding Ltd - ADR BABA by more than 4 to 1 on Wednesday.

A lot of that activity was short-dated, but the most interesting trade was the purchase of 2,200 contracts of the January 2023, $285-strike calls for $15. The trader is betting $3.3 million that the stock is going to trade more than 42% higher at the January 2023 expiration.