The company is going to report earnings on Wednesday after the market closes and the options market is implying a move of 7% in either direction. The stock moved 8% on average over the last 8 quarters, explained Khouw.
During the session on Wednesday, he saw some activity in the November $550 calls. Around 3,000 contracts were traded for $12.50, said Khouw. The trade breaks even at $562.50 or around 5% above the closing price on Tuesday.