PayPal Holdings Inc (NASDAQ:PYPL) closed Monday with big gains, rising almost 8%.
On CNBC's "Options Action," Mike Khouw of Optimize Advisors said calls outpaced puts by around 2:1.
The options market “is implying a move of just over 7% by the end of the week,” Khouw said. This is inline with now the stock has performed over the past eight reported quarters, he added.
There were buyers of 4,900 February 180 strike calls, for an average price of $2.12 per contract, Khouw mentioned. Buyers of these contracts “are obviously betting that the news can be good and the rally we saw last Friday and today could continue through the end of the week,” he said.
