On CNBC's Options Action, Mike Khouw spoke about unusually high options trading volume in Kate Spade & Co KATE. He explained that options volume was five times higher than the average daily options volume and he noticed one trade that became very profitable.
Early in the session, a trader bought 2,000 contracts of the January 17 calls for $0.20 and in less then 20 minutes after he opened the trade the premium went up to $2. The trader realized a profit of $360,000 in 20 minutes. Kate Spade gained 23.09 percent on Wednesday.
Users of Benzinga Pro were alerted to this option alert about 10 minutes before the rumor hit and several option alerts shortly after the rumor hit wires:
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