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Mike Khouw Sees Unusual Bearish Options Activity In Fitbit

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On CNBC's Options Action, Mike Khouw spoke about unusually high bearish options activity in Fitbit Inc (NYSE: FIT). The stock dropped 18.45 percent on Tuesday and options traders are betting that it is going to decline even lower.

Khouw said that options trading volume on Tuesday in Fitbit was five times higher than the average daily options trading volume. At the beginning of the session traders were buying the January 32 puts, but as the stock declined they moved to the January 27 puts and towards the end of the session they were buying the January weekly 25 puts for $1.40.

By purchasing the January weekly 25 puts traders are betting that the stock is going to decline to $23.60 by the end of the week or around 3 percent lower from the closing price.

 

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Posted-In: CNBC Mike Khouw Options ActionOptions Markets Media

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