Mike Khouw Sees Unusual Call Options Activity In Virgin Galactic

On CNBC's "Options Action," Mike Khouw said Virgin Galactic Holdings (NYSE: SPCE) traded more than six times the average daily call options volume on Thursday. Most of that activity was concentrated in options that expire on Friday.

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The January $33 calls were extremely active as they traded more than 10 times the open interest. Buyers were paying around a dollar for these calls and they are betting the rally is going to continue on Friday. They're risking just over 1% of the current stock price.