Mike Khouw Sees Unusual Options Activity In International Game Technology

On CNBC's "Options Action," Mike Khouw said he saw 14 times the average daily call options volume in International Game Technology PLC IGT on Thursday. Calls outpaced puts by about 8 to 1 and all of that was a result of a trader purchasing 20,000 contracts of the November $26/$33 call spread for $1.38.

The trade breaks even at $27.38 or around 16% above the closing price on Thursday. The stock needs to jump around 40% for the trade to reach its maximal profit of $5.62. It looks like the trader was adjusting earlier position in the November $23/$30 calls spread, said Khouw.