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Mike Khouw Sees Unusual Options Activity In Electronic Arts

On CNBC's "Options Action," Mike Khouw spoke about unusually high options volume in Electronic Arts (NASDAQ: EA) on Monday.

05/11/2021 10:53

On CNBC's "Options Action," Mike Khouw spoke about unusually high options volume in Electronic Arts (NASDAQ:EA) on Monday. The company is due to report earnings on Tuesday and the options market is implying a move of 5.6%, which is more than 3.3% or so that the company has averaged over the last eight quarters.

Put volume exceeded the average by more than seven times and all of that was a result of the purchase of 6,700 contracts of the June $140/$130 put spreads. Buyers paid $3.87 for them, which sets the breakeven for the trade at $136.13 or around 3.2% below the closing price on Monday.