Mike Khouw Sees Bearish Options Activity In Yahoo! Inc.

Mike Khouw analyzed on CNBC's Options Action bearish options activity in Yahoo! Inc. YHOO ahead of earnings. He noticed that there was 35 percent higher put options volume that the average daily puts volume. The company is going to report earnings on Tuesday afternoon and options are implying a 8 percent move. Historically, Yahoo! Inc. moves around 5 percent on the earnings. Khouw added that traders were buying the January 30 weekly 46.50 puts for $0.80 on Monday. The break even for the trade is at $45.70 or 7.60 percent lower. It is also interesting that there was some bearish activity in Alibaba Group Holding Ltd BABA too.