Mike Khouw Sees Unusual Options Activity In Market Vectors Gold Miners ETF

Speaking on CNBC's "Options Action", Mike Khouw said that puts outnumbered calls 2 to 1 in Market Vectors Gold Miners ETF GDX on Monday.

He also noticed that traders were buying the September 20.5 puts for $0.16. Over 14,000 contracts were traded and Khouw thinks that the trade is a cheap hedge against a potential move lower. The trade breaks even at $20.34 or approximately 11 percent lower.