Mike Khouw Sees Unusual Options Activity In Chipotle

On CNBC's "Options Action", Mike Khouw spoke about unusually high options activity in Chipotle Mexican Grill, Inc.CMG.

The company is going to report earnings on Tuesday and the options market is implying a move of 7 percent in either direction versus its average move of 5.6 percent for the past eight quarters. The unusual options activity in the name started last week after the food poisoning incident in Virginia. The daily volume was four to five times higher than the average daily options volume.

The sentiment was bearish last week, but on Monday both bulls and bears were making bets on big moves, explained Khouw. He noticed a purchase of the weekly 400 calls and also the weekly 300 puts.