Mike Khouw Sees Unusual Options Activity In Shake Shack
On CNBC's "Options Action," Mike Khouw spoke about options activity in Shake Shack Inc (NYSE: SHAK) ahead of its earnings report, scheduled for the next week.
Khouw said the options market is implying a move of 12.5% higher or lower by the end of the next week. He added that people who were looking at options on Thursday might have noted that there was a lot of puts trading, but some of that was just adjusting already open positions.
The most opening activity was in the May $56 calls and over 1,400 contracts were traded by the end of the day, said Khouw. Buyers of these calls were paying around $4 for them, which sets the break even for the trade at $60 or around 10% above the closing price on Thursday.
See more from Benzinga
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
