Mike Khouw Sees Unusually High Options Activity In AMC Entertainment

On CNBC's "Options Action," Mike Khouw spoke about unusually high options volume in AMC Entertainment Holdings Inc AMC.

It has an average volume of around 900,000 contracts and on Wednesday it traded over 4.6 million contracts. The entire U.S. options market traded 42.5 million contracts so the volume in AMC was around 11% of the total volume.

See Also: AMC Shorts Get Smoked And Options Traders Jump In

The cost of these options was also unusually high as the July $65 straddle cost about $65 at one point during the session on Wednesday.

The most active option in AMC was the June 4, $73-strike call as around 233,000 contracts were traded for $8.30. Buyers of these calls are betting the stock is going to jump above 81.30 or more than 30% above the closing price on Wednesday.