Mike Khouw Sees Unusual Options Activity In Tesla

On CNBC's "Options Action," Mike Khouw said call volume in Tesla, Inc. TSLA doubled on Tuesday in comparison to Monday's volume. It nearly reached two times the 20-day average call volume as over a million call contracts were traded.

Khouw has also noticed an uptick in realized volatility as it has nearly doubled. The most active contracts on Tuesday were the March weekly $700 calls. They were traded for around $9. It seems that some dip buyers are stepping into the mix and expecting Tesla to rebound over the days and weeks ahead, said Khouw.

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