Mike Khouw Sees Unusual Options Activity In Netflix

Mike Khouw spoke on CNBC's "Options Action," about unusually high options activity in Netflix Inc NFLX on Wednesday.

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The company is reporting earnings on Thursday and the options market is implying a move of 10% in either direction, while the stock moved around 4.4% on average over the last eight quarters.

Calls outpaced puts by about three to one on Wednesday, said Khouw. During the session, he noticed a purchase of the July 24, $520 calls for $30. The trade breaks even at $550 or 5.11% above the current market price.