Mike Khouw Sees Unusual Activity In Tesla

On CNBC's "Options Action," Mike Khouw said that calls outpaced puts by 2 to 1 in Tesla Inc TSLA on Wednesday. The volume was above average.

Most of the activity was concentrated in short-dated options and he noticed a purchase of 40,000 contracts of the July 2, $1,200 calls for $3.50. The trade breaks even at $1,203.50 or around 7.5% above the closing price on Wednesday.

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