Mike Khouw Sees Unusual Options Activity In Micron

On CNBC's "Options Action", Mike Khouw spoke about a high options volume in Micron Technology, Inc. MU. He said that bullish bets outnumbered bearish bets by around 2 to 1 Thursday.

During the trading session, he noticed a large sale of the April 45 puts in the name. Around 10,000 contracts were sold for an average price of $4.35. The trade breaks even at $40.65 or 8.49 percent below the current market price. If the stock stays above $40.65 at the April expiration, the trade is going to make money. If it stays above $45 at the April expiration, traders are going to collect the whole premium. Below $45, they are going to have to buy the stock and below $40.65, the trade starts to lose money.