Mike Khouw Sees Unusual Options Activity In Slack

On CNBC's "Options Action," Mike Khouw spoke about unusually high options activity in Slack Technologies Inc WORK. It traded 1.5 times its average daily volume in the first half of the session on Wednesday and by the end of the day, the volume reached 2.3 times the average daily volume.

The most active contracts were the November $25 puts, said Khouw. Around 7,500 contracts were traded for $3. The trade breaks even at $22 or 6.94% below the current stock price. He explained that this could be a hedge for a long stock position.