Mike Khouw Sees Unusual Options Activity In UPS

On CNBC's Options Action, Mike Khouw said the options trading volume in United Parcel Service, Inc. UPS was 1.5 times higher than the average daily options trading volume. He has also noticed increased options activity in FedEx Corporation FDX. Kouw added that traders were buying the April 100 calls in UPS and they were paying $3.40 for them. The breakeven for the trade is $103.40 or 5.6 percent higher.