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.

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.