On CNBC's "Options Action," Mike Khouw of Optimize Advisors said that the daily call volume Monday was well above average for Twitter Inc TWTR. Calls were 2.5 times higher than puts.
The options market is implying a move of around 115 by the end of the week, following the company’s earnings call. Khouw said this is in-line with the average move over the week when the company reported results for the last eight quarters.
November 60 calls of 21,000 were traded at an average price of $5. Buyers of those calls are betting on the stock rising above $65 by the November expiration. Khouw said a large part of the flow was institutional trading.
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