Why Best Buy Is Proving It's An Options Market Darling

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said that Best Buy Co Inc BBY witnessed “very extraordinary activity” on Monday.

It was a “meme stock mania type of options activity,” with the stock trading more than 16 times its average daily volumes, Khouw said. It was one of the top 10 most active single stock options, which puts it in the realm of Apple, Facebook and Tesla, he added.

There were buyers of 22,300 of the March 11 weekly 30 calls for an average price of $1.86 per contract, Khouw mentioned. Buyers of those calls are betting the stock will double by the end of this week, he added.