Mike Khouw Sees Unusual Options Activity In Oracle

Mike Khouw spoke on CNBC's "Options Action" about unusual options activity in Oracle Corporation ORCL, which is due to report earnings Thursday after the market close.

Khouw said Oracle traded more than two times calls over puts Wednesday, although the volume was average. He expects to see an increase in options activity in the name Thursday. The options market is implying a move of 5.6% and the stock moves 5.3% on average on the event.

Some traders are making more ambitious bets, said Khouw. There was a purchase of 500 contracts of the October $60 calls. Traders paid $1.31 for them, which sets the break-even at $61.31 or around 7.7% above the closing price on Wednesday.