Mike Khouw said on CNBC’s “Options Action” he saw four times the average daily put volume in Micron Technology, Inc. (NASDAQ:MU) on Thursday. Call options volume was also above average, but puts were more notable, he added.
During the session, Khouw noticed somebody bought 5,000 contracts of the August 27, $65-strike puts for 65 cents. The buyer is betting the stock is going to trade below $64.35 or more than 8.40% lower at the August expiration.
