Mike Khouw Sees Unusual Options Activity In Home Depot

Mike Khouw spoke on CNBC's Options Action about unusually high call options activity in Home Depot Inc HD. The company is going to report earnings on Tuesday and it moves on average 2.8 percent on the event. The options market is currently implying a move of 2.4 percent.

The most active contracts were the March 150 call options as almost 2,000 contracts were traded for $0.42. The trade breaks even at $150.42 or 5.79 percent above the closing price on Wednesday.

Khouw added options in Home Depot are currently cheap and he sees that as a reason why traders are buying options in the name rather than the stock.