Mike Khouw Sees Unusual Options Activity In ARK Genomic Revolution ETF

On CNBC's "Options Action," Mike Khouw said ARK Genomic Revolution ETF ARKG was active on Tuesday as it traded six times its average daily put volume. Puts outnumbered calls by about 2.5 to 1.

The most active options were the October 1, $76 puts as about 5,700 contracts were traded for about $1.78. The trade was largely a result of a big roll as somebody who made a bearish bet with the October $79 puts rolled down the position and upsized the trade, pressing the bearish bet and betting the weakness on Tuesday could continue. The trade breaks even at $74.22 or 1.37% below the closing price on Tuesday.