Mike Khouw Sees Unusual Options Activity In iShares iBoxx $ High Yid Corp Bond (ETF)

Mike Khouw said on CNBC's Options Action that he noticed unusually high options activity in iShares iBoxx $ High Yid Corp Bond (ETF) (NYSE: HYG) on Tuesday. Put options volume was 4x higher than the average daily put options volume and puts outnumbered calls 5 to 1.

Khouw noticed some activity in the March 71 puts as traders bought 40.000 contracts for $0.45 per contract. The breakeven for the trade is at $70.55 or 7.43 percent lower.