Mike Khouw Sees Unusual Options Activity In Whole Foods Market, Inc.

Speaking on

, Mike Khouw said that around 2.5 times average daily call options volume was traded in

. The most active were the November 40 call options and traders were paying $1.65 for them. Khouw explained that buyers are making bullish bets that the stock is going to trade above $41.65 by the November expiration. He added that

faces margin pressures and that is why options are a better way to get long than buying stocks. The only thing he would change about this trade is the expiration. Khouw would pick a longer dated option.

spiked 3.1 percent and closed at $39.38.