Mike Khouw Sees Unusual Options Activity In Disney

Speaking on CNBC's Options Action, Mike Khouw said there was a bullish options activity in Walt Disney Co DIS on Wednesday.

He added that call options outnumbered put options 4 to 1 and 9 out of 10 most active options in the name were calls. The most active among them was the April 113 call. Close to 3,200 contracts were traded and traders paid around $1 for them. The break even for the trade is at $114 or 2.85 percent higher.

Since the April expiration doesn't capture the earnings, Khouw suggested that traders who want to follow the trade should consider buying the May expiration calls.