On CNBC's Options Action, Mike Khouw spoke about unusually high options activity in United Parcel Service, Inc. UPS. The call options volume on Monday, a day before the earnings release, was more than two times higher than the average daily call options volume.
The stock is moving around 2 percent on average on earnings and that is what the options market is implying right now. The most active options on Monday were the October weekly 105-strike calls, which traded for $2.85. The breakeven for the trade is at $107.85 or 1.5 percent higher from Monday's closing price and the stock has to move above that price by Friday expiration.
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