Mike Khouw Sees Unusual Options Activity In The High Yield Bond ETF

On CNBC's "Options Action", Mike Khouw spoke about high options volume in iShares iBoxx $ High Yid Corp Bond (ETF) (NYSE: HYG).

He said that the put options volume Thursday reached four times the average daily put volume. Khouw added that during the trading session a sale of the January 86 puts and the January 87 calls caught his attention. With the sale, traders collected $1.85. The trade breaks even at $88.85 and $84.15. Khouw thinks this trade is a sign that most of the damage in the name is probably done.