Mike Khouw Sees Unusual Options Activity In Zoom Video Ahead Of Earnings

On CNBC's "Options Action," Mike Khouw said that Zoom Video Communications Inc ZM saw more than double the average daily call volume on Monday.

The company is scheduled to report earnings on Tuesday and the options market is implying a move of 15% in either direction.

See Also: Zoom Analyst Sees 'Minimal' Near-Term Upside Ahead Of Q1 Report

The most active options were the June 5, $200 strike calls and they were trading for about $12. The trade breaks even at $212 or 3.85% above the closing price on Monday. Khouw explained that the buyers are betting that the stock is going to rally on earnings.