Mike Khouw Sees Unusual Options Activity In The Energy ETF

Mike Khouw said on CNBC's "Options Action" that options traders are betting on more downside for Energy Select Sector SPDR (ETF) XLE.

He explained that the put option interest doubled since late January. The greatest open interest is in the September and the December 60 and 62 puts, added Khouw. He also noticed that traders are buying call options in crude oil.