Mike Khouw Sees Unusual Options Activity In Tiffany & Co.

On CNBC's "Options Action," Mike Khouw said that he saw more than three times the average daily call volume in Tiffany & Co. TIF on Monday.

The high call volume was a result of a single trade in the November $125/$130 call spread. A trader bought 10,000 contracts for $1.05, betting around $1 million that the stock will jump at least above $126.05 or 7.74% higher from the closing price on Monday.

The trade is going to reach its maximal profit of $3.95, if the stock jumps to $130 or higher, which would be a move of more than 11%.