Mike Khouw Sees Unusual Options Activity In Wells Fargo

On CNBC's "Options Action," Mike Khouw spoke about unusually high options activity in Wells Fargo & Co WFC. He said that calls outpaced puts by about 2 to 1 on Wednesday and he noticed one big trade during the session.

A trader bought 620 contracts of the July 2, $31 strike calls for 52 cents. The trade breaks even at $31.52 or around 15% above the closing price on Wednesday. Khouw thinks the trader is speculating that the news on stress test is going to be better than expected.