Mike Khouw spoke on CNBC's Options Action about unusually high bearish options activity in Ford Motor Company (NYSE:F). The put options trading volume was 2.5 times higher than the average daily put options volume and the most active option was the June 12 put.

Around 12,000 contracts of the June 12 put were traded on Monday and traders paid around $0.55 for them. The trade breaks even at $11.45 or 6.76 percent below the closing price on Monday.

Khouw said the stock looks cheap on a trailing one-year basis, but in a longer-term view it doesn't look cheap. He added that the auto industry is highly cyclical industry, sensitive to oil prices and product cycle issues.