Mike Khouw Reveals Stocks That Could Cut Dividends

Speaking on CNBC's "Options Action", Mike Khouw said that the options market is implying that Verizon Communications Inc. VZ, General Electric Company GE and Macy's Inc M could cut their dividends.

The options market is forecasting a 34 percent dividend cut for Verizon, because the company might have to sell assets to make dividend payments.

General Electric has cash flow problems and the options market expects a 25 percent dividend cut.

Khouw added Macy's is facing secular headwinds and the options market is implying a 39 percent dividend cut.