Mike Khouw Sees Unusual Options Activity In United States Oil Fund LP

On CNBC's Options Action, Mike Khouw spoke about unusually high bearish options activity in United States Oil Fund LP (ETF) USO. He noticed that put options volume on Wednesday was 1.5 times higher than the average put options volume.

Khouw said that more than 80,000 contracts of the November 13.5 puts were traded for $0.65. The breakeven for this trade is at $12.85 or approximately 11 percent lower from the current stock price.