Mike Khouw Sees Unusual Options Activity In Walt Disney

On CNBC's "Options Action," Mike Khouw said he saw over two times the average daily put volume in Walt Disney Co DIS on Wednesday. The company is scheduled to report earnings on Thursday after the bell, and the options market is implying a move of 4.3% by the end of the week.

The average move for the event over the last eight quarters was 3%.

The big trade that Khouw saw was in the November $130 puts. Over 11,500 contracts were traded for $1. The trade was maybe even paired with the November $147 calls, said Khouw. It looks to him that somebody tried to finance the purchase of puts by selling the November $147 calls for $1.