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Mike Khouw Sees Unusual Options Activity In Square

Mike Khouw Sees Unusual Options Activity In Square

On CNBC's "Options Action," Mike Khouw spoke about options activity in Square Inc (NYSE: SQ) he saw ahead of the company's earnings release.

The options market is implying a move of 8.8% in either direction by the end of the week, said Khouw. He is not surprised by the size of the move because the stock moved 7.5% on average over the course of the last eight quarters.

See Also: Square Reports Massive Q2 Earnings Beat, As Bitcoin Revenue Rises 600%

The bulls and bears were evenly matched on Tuesday, but the most active options were the August 7, $140 calls. Just under 5,000 contracts were traded for about $4.65, said Khouw. He explained that buyers are betting that the stock is going to trade higher than $144.65 by the end of the week.

Late Wednesday, reported a big second-quarter EPS and sales results. The stock was up 11% at time of publication.


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