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Mike Khouw Sees Unusual Options Activity In ViacomCBS

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Mike Khouw spoke on CNBC's "Options Action," about unusually high options activity in ViacomCBS Inc. (NASDAQ: VIAC) on Tuesday. He noticed the call options volume was over three times the average daily call options volume and the most of that activity came from the May $16 calls.

A couple of thousand contracts were traded in the strike and traders were paying around $1.80 for these options. The trade breaks even at $17.80 or around 21% above the closing price on Tuesday. Khouw explained that this is a big bet and the trader expects a big bullish move in five weeks. The premium is approximately 12% of the stock price.

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Posted-In: CNBC Mike Khouw Options ActionMedia