Mike Khouw Sees Unusual Bearish Options Activity In Pfizer Inc.

, Mike Khouw spoke about bearish options activity in

ahead of earnings. The company is due to report earnings on July 28 and the stock usually moves around 1.2 percent on the day after the earnings. On Monday, the options traders were looking for a bigger move. Khouw noticed that somebody who was already long 16,000 of the August 35 puts decided to roll out the position to the September 33.5 puts. Khouw explained that the trader is betting that

could be trading 5 percent or more lower in just over a month, which is its usual move in a month after the earnings.