Mike Khouw Sees Unusual Activity In FedEx

Mike Khouw spoke on CNBC's "Options Action" about unusually high options activity in FedEx Corporation FDX.

The stock traded sharply lower on Wednesday and Khouw saw well over 10 times the average daily options volume in the name.

See Also: FedEx Delivers Pain To Shareholders, But Some Analysts Are Shipping Support

The most active were the Sept. $151 puts as around 10,000 contracts were traded on Wednesday morning. Traders paid $2.25 for them, which sets the breakeven for the trade at $148.75 or around 1.14% below the stock price.

Khouw had a long position in the name before the earnings, but he decided to close 80% of his position after the stock traded sharply lower.