Mike Khouw Sees Unusual Options Activity In Applied Materials, Inc.

CNBC Options Action's Mike Khouw said on the show that he noticed unusually high bullish options activity in Applied Materials, Inc. AMAT. Call options volume was five times higher than the average daily call volume on Tuesday. One trade caught Khouw's attention. Somebody bought 25,000 contracts of the June 27 call options and sold 25,000 contracts of the June 30 call options. The trader paid $0.46 for the call spread. The break even for the trade is at $27.46 and the profits are capped at $30. The maximal gain is $2.54 and the stock has to jump 15 percent to reach the break even target. The expiration is long enough to capture the company's general annual meeting and earnings report.