Mike Khouw Sees Unusual Options Activity In Axovant Sciences

Speaking on CNBC's "Options Action", Mike Khouw said that he noticed a big options volume in Axovant Sciences Ltd AXON after the stock plunged 73.9 percent. The options trading volume was five times the average trading volume.

Khouw noticed some activity in the October 7.50 calls. Around 3,700 contracts were traded for 45 cents, which sets the break even for the trade at $7.95 or 25.59 percent above the current market price. Axovant Sciences traded lower on Tuesday on the news of disappointing results for its late-stage trial drug.