Mike Khouw Sees Unusual Options Activity In Micron Technology

On CNBC's "Options Action," Mike Khouw said he saw calls outpacing their average by about 1.8 times in Micron Technology, Inc. MU on Monday. They also outpaced puts by about 2.4 times.

The most active options were the October 1, $80-strike calls as over 12,000 contracts were traded. The October 1, $75-strike calls were the second most active on the day. Institutional sellers were behind some of the volume in the October $80 calls, but they were mostly buyers of the October $75 calls.

Micron is going to report earnings on Tuesday after the bell and the options market is implying a move of 5.5% in either direction. It seems that institutional traders are betting on a move higher in a range between 3% and 5%, said Khouw.