Mike Khouw Sees Unusual Activity In Twitter Inc

On CNBC's Options Action, Mike Khouw said that there was a big call options activity in Twitter Inc TWTR on Wednesday. Calls outnumbered puts 5 to 1 and almost all of the volume was a result of one big set of trades.

Khouw explained that somebody who has already had a bullish position decided to make some adjustments. The trader decided to sell to close one call spread and to roll out another call to the June expiration, by purchasing 11,000 contracts of the June 21 call options for $1.30.

The breakeven for the trade is at $22.30 or 28 percent higher.