Payments Stocks Spike, This One May Have More Runway Left

Shares of payments stocks Tuesday climbed, with Mastercard Inc MA and PayPal Holdings Inc PYPL rising more than 4% each, Visa Inc V gaining over 3% and Block Inc SQ adding more than 6%.

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said that there were bullish bets on all four of these stocks, but the largest were in Visa. The stock traded more than 2 times its average daily options volumes on Tuesday, with calls outpacing puts, he added.

Check out other stocks making big moves in the premarket.

There were buyers of 2,852 of the April 1 weekly 230 strike calls for an average price of 83 cents, Khouw mentioned. The buyers of these are betting that the stock retests the highs reached in February by Friday, he added.

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