Mike Khouw Sees Unusual Options Activity In Freeport-McMoRan

On CNBC's "Options Action," Mike Khouw said Freeport-McMoRan Inc FCX traded over two times the average daily options volume Wednesday and calls outpaced puts by over 6 to 1.

The most active options were the September $17 calls. About 26,000 of those trade for just over 30 cents, which was considerably more than the open interest. The buyers are betting that the stock is going to trade above $17.30 at the September expiration.That would be an increase in price of 3% or more by the end of the week, said Khouw.