Mike Khouw Sees Unusual Options Activity In Delta Air Lines

Mike Khouw said on CNBC's Options Action that Delta Air Lines, Inc. DAL had unusually high options volume on Tuesday as call options volume reached 5 times its average daily call options volume.

Khouw noticed that a trader bought 40,000 contracts of the June 50/55 call spread for $1. The trade breaks even at $51 or more than 10 percent above the closing price on Tuesday. Khouw added that it seems the trader is betting that Delta Air Lines is going to jump above its 52-week high.