Mike Khouw Sees Unusual Options Activity In Celgene

On CNBC's "Options Action", Mike Khouw spoke about unusually high options activity in Celgene Corporation CELG. The call options trading volume was three times the average daily call options volume on a day when the stock fell 4.44 percent.

Khouw noticed one big trade in the name. Around 1,500 contracts of the October 143 calls were traded for $1. The trade expires next Friday and it breaks even at $144 or 2.85 percent above the current market price. The options traders are betting that the stock can recover $4 of the $6.50 that it lost on Thursday.