On CNBC’s “Options Action,” Mike Khouw of Optimize Advisors said that the daily call volume Monday was well above average for Twitter Inc (NYSE: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.
