Mike Khouw Sees Unusual Options Activity In AT&T

On CNBC's "Fast Money Halftime Report," Mike Khouw spoke about unusual options activity in AT&T Inc. T ahead of earnings report, which is scheduled for Monday.

The options market is implying a move of 4.5% in either direction, while the stock moved around 5% on average over the last eight quarters. The activity on Thursday was not particularly bullish, said Khouw. He noticed a sale of the 2,700 contracts of the November $40 calls for 18 cents.