Mike Khouw Sees Unusual Options Activity In Nike

Mike Khouw spoke on CNBC's "Options Action" about unusually high options activity in Nike Inc NKE. The put options volume was over five times the average daily put volume and most of the activity was concentrated in the June 52 puts.

Around 20,000 contracts of the June 52 puts were traded as a block for 90 cents on Thursday. The trade breaks even at $51.10 or 3.40 percent below the current stock price. Khouw added that the company reports earnings on June 29, while the puts expire on June 30. The stock moves usually around 5 percent on earnings, so Khouw thinks that puts in Nike are reasonably priced.