Mike Khouw Sees Unusual Options Activity In Facebook - ProShares S&P 500 Dynamic Buffer ETF (BATS:FB)

On CNBC's "Options Action," Mike Khouw spoke about an unusual options activity in Facebook, Inc. (NASDAQ:FB) ahead of earnings. The company is going to report earnings on Wednesday and the options market is implying a move of 6.5% in either direction. The stock has moved around 7% on earnings on the longer-term period but in the last four quarters, it moved around 10%.

The largest trade of the session was a purchase of 6,800 contracts of the July 180 puts for $0.50. Ultimately, over 11,000 contracts of the July 180 puts exchanged hands. The trade breaks even at $179.50 or 11.30 percent below the closing price on Tuesday.

Facebook closed Tuesday's session at 202.36 per share.

FBProShares S&P 500 Dynamic Buffer ETF

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