Mike Khouw Sees Unusual Bearish Options Activity In Abercrombie & Fitch

Mike Khouw spoke on CNBC's Options Action about trading activity in Abercrombie & Fitch Co. ANF on Thursday. He said that three times average daily options volume was traded ahead of earnings report, which is scheduled for next week. The average move on earnings report over the last eight quarters was 7 percent and this time options market is anticipating a move of 13.5 percent. The most active options on Thursday were the March 18 puts. Over 15,000 contracts were bought at $0.20. The breakeven for this trade is at $17.80, which means that Abercrombie & Fitch has to drop 26 percent for the trade to be profitable at expiration.