Mike Khouw Sees Unusual Options Activity In Advanced Micro Devices

On CNBC's "Options Action," Mike Khouw said Advanced Micro Devices, Inc. AMD traded more than four times its average daily options volume on Thursday and it was the most active single stock option. Calls outpaced puts more than 2 to 1 in the name following good earnings results.

During the session, Khouw noticed a purchase of 49,000 contracts of the Aug. 6, $105-strike calls for $2.15. Buyers are betting the rally in Advanced Micro Devices could continue and the stock could move more than 4% higher by the end of the next week.