Mike Khouw Sees Unusual Options Activity In United States Steel

Mike Khouw spoke on CNBC's Options Action about unusually high options activity in United States Steel Corporation X. The call options trading volume was well over two times higher than the average daily call volume on a day when the stock spiked 8.34 percent.

The most of the trading activity in the options market was concentrated in the November 14 calls as 10,000 contracts were traded for $0.42. The breakeven for the trade is at $14.42 or 26 percent higher from the current stock price. Khouw said that the company is reporting earnings in November and he explained that the stock has been one of the worst performers so far.