Mike Khouw Sees Unusual Options Activity In ARK Innovation ETF

On CNBC's "Options Action," Mike Khouw said puts outtraded calls by about 2 to 1 on an above-average volume in ARK Innovation ETF ARKK. The overall volume was over 100,000 contracts.

Most of the opening activity on the put side was in the September $104 puts as over 7,000 contracts were traded for $1.76. A lot of that was a result of adjustments to the earlier bearish activity in the August $115 puts, said Khouw. The recent weakness was a chance to take profits. Currently, there are open put contracts on about 81.5 million shares of the ARK Innovation ETF and that is about 44% of the float, said Khouw.