Mike Khouw Sees Unusual Options Activity In Amazon

On CNBC's "Options Action," Mike Khouw spoke about bullish options activity in Amazon (NASDAQ:AMZN) on Monday as the stock jumped on the rumor of a stock split.

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Calls outpaced puts by about three to one and the most active options were the weekly $3,500 calls. Around 16,000 contracts were traded for $40. The breakeven for the trade is $3,540 or 3.84% above the closing price on Monday. Khouw also noticed a spike in implied volatility in the name.