Bonawyn Eison Sees Unusual Options Activity In Docusign

On CNBC's "Options Action," Bonawyn Eison said that calls outpaced puts three to one in Docusign Inc (NASDAQ: DOCU) on Wednesday. The company is going to report earnings on Thursday and the options market is implying a move of 20% in either direction. The average move for the event is 11%.

One trade caught Eison's attention.

During the session, there was a purchase of 5,000 contracts of the September 4, $300 calls for $17. The trade breaks even at $317 or around 20% above the closing price on Wednesday. Eison believes this could be a stock replacement strategy as the buyer is risking only 6.4% of the current stock price to get upside exposure.