On CNBC's "Options Action," Mike Khouw said that SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) traded six times its average daily put options volume on Thursday.

During the session, he noticed that a trader sold to close 15,000 contracts of the September $73/$50 put spread to buy 22,000 contracts of the March $70/$55 put spread. The trader has spent $5 million in incremental premium to roll the position to March. This is either a big hedging trade or a big bearish bet, said Khouw.