Mike Khouw Sees Unusual Options Activity In Electronic Arts

On CNBC's "Options Action," Mike Khouw spoke about unusually high options volume in Electronic Arts EA on Monday. The company is due to report earnings on Tuesday and the options market is implying a move of 5.6%, which is more than 3.3% or so that the company has averaged over the last eight quarters.

Put volume exceeded the average by more than seven times and all of that was a result of the purchase of 6,700 contracts of the June $140/$130 put spreads. Buyers paid $3.87 for them, which sets the breakeven for the trade at $136.13 or around 3.2% below the closing price on Monday.