More Losses Ahead For Okta Shares After Hack Warning?

Shares of Okta Inc OKTA tanked after the identity and access management company Wednesday warned of a security breach that could potentially affect hundreds of its customers and thus millions of people.

The stock lost almost 11% on Wednesday and close to 3% on Thursday and could continue to decline during Friday’s premarket trading.

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said the stock is down 50% from its 52-week high and traded more than four times its average daily volumes on Thursday, with bearish bets outpacing bullish ones.

There was a buyer of 867 of the April 135 puts for an average price of $5.90 per contract, Khouw mentioned. The buyer is betting a little over $500,000 in premium that Okta’s stock will decline by at least 10% by April expiration, he added.