Mike Khouw said on CNBC's "Options Action" that he saw more than four times the average daily call options volume in Under Armour Inc (NYSE:UAA) on Thursday. The open interest has also more than doubled since April expiration.
The most of the activity on Thursday was in the January 2021, $10, $12.50 and $15 strike calls. A lot of that was repositioning, explained Khouw.
The one that saw the most opening activity was the January 2021, $12.50 call as over 11,000 contracts were traded for 70 cents. Khouw said this is a way to make a risk-managed bet to the upside as the options market is implying a move of more than 30%, higher or lower.