Mike Khouw Sees Unusual Options Activity In Freeport-McMoRan

Mike Khouw said on CNBC's Options Action there was unusually high bearish options activity in Freeport-McMoRan Inc FCX on Tuesday. He added that put options volume was 2.5 times higher than the average daily put options volume.

Khouw thinks options traders could be bearish because Carl Icahn sold some of his stock and possibly because of a bearish analyst report on copper.

The March 14 puts were the most active options on Tuesday as traders bought 32,000 contracts for $0.15. The trade breaks even at $13.85 or 12.89 percent below the closing price on Tuesday.