Twitter Options Volume Explodes After Elon Musk Buys Stake

Shares of Twitter Inc TWTR Tuesday jumped more than 27% after Tesla Inc TSLA CEO Elon Musk disclosed a 9.2% stake in the micro-blogging site.

On CNBC's "Options Action," Mike Khouw of Optimize Advisors said that Twitter traded more than 20 times its average daily volume on Tuesday.

With over 1.56 million contracts being traded, Twitter become the busiest single-stock option, he added.

Check out other stocks making big moves in the premarket.

There were buyers of 190,000 of the April 8 weekly 50 strike calls for an average price of $2.15 per contract, Khouw said. The buyers of these contracts are betting that the stock rises at least another 4% by Friday, he added.