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Mike Khouw Sees Unusual Options Activity In Raytheon

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Mike Khouw spoke on CNBC's Options Action about increased options activity in Raytheon Company (NYSE: RTN). The options trading volume on Thursday was four times higher than the average daily options volume and Khouw noticed mostly bearish bets.

The company is reporting earnings on October 27 and traders were betting that the stock could trade around 5 percent lower. They purchased 1,200 contracts of the January 130/135 put spread for $1.50. The trade breaks even at $133.50 or 3.3 percent lower and it can maximally make $3.50 if the stock drops to $130.

Posted-In: CNBC Mike Khouw Options ActionOptions Markets Media

 

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