Unusual Options Activity In El Pollo LoCo

CNBC Options Action's Mike Khouw

about

. This name caught his attention because higher than average daily options volume was traded on Wednesday. He said that the September at the money straddle in

is trading at five dollars, which means that the options traders believe that this stock could move almost 15 percent after the company reports earnings on Thursday. Khouw also noticed interesting activity in the September 33 put options and traders were paying $1.25 for these. The breakeven for this trade is at $31.75, which means that the owners of these puts are expecting

to decline more than 7.68 percent.