Mike Khouw Sees Unusual Options Activity In Amazon

On CNBC's "Options Action," Mike Khouw spoke about bullish options activity in Amazon AMZN on Monday as the stock jumped on the rumor of a stock split.

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Calls outpaced puts by about three to one and the most active options were the weekly $3,500 calls. Around 16,000 contracts were traded for $40. The breakeven for the trade is $3,540 or 3.84% above the closing price on Monday. Khouw also noticed a spike in implied volatility in the name.