Mike Khouw Sees Unusual Options Activity In Caterpillar Inc.

, Mike Khouw spoke about options activity in

. He said that the options volume was 4 times higher than the average daily options volume and he noticed that traders were making some bearish bets. They were buying the July 75 puts for $0.40. For the trade to be profitable

has to drop to $74.60 or 3 percent lower by next Friday. Khouw thinks that this is an inexpensive way to make a bearish bet as he believes that

could easily decline 3 percent in such a short period.