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Mike Khouw Sees Unusual Options Activity In Slack - Benzinga

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On CNBC's "Options Action," Mike Khouw spoke about unusually high options activity in Slack Technologies Inc (NYSE: WORK) ahead of earnings, scheduled on Thursday. He said calls out-traded puts by about 5 to 1 for the last 20 days on average and the options market is implying a move of 12% on earnings in either direction.

Khouw noticed during the session on Wednesday that somebody sold 7,000 contracts of the January 2022, $45 strike calls for $8.87 and bought 406,000 shares of Slack. The trade is going to make the most money if the stock goes up to the $45 strike at the January 2022 expiration, explained Khouw. He added that it will also make money if it drifts higher and volatility comes in.

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