On CNBC's "Options Action," Mike Khouw said calls outpaced puts by about 2 to 1 on Tuesday. The company is going to report earnings on Wednesday after market close and the options market is implying a move of 5.4% in either direction, which is pretty much in line with the average move of 5%.

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The most active options were the $200-strike calls that expire on Friday as over 18,000 contracts were traded for $3.17. The average trade size was only four contracts so buyers were largely retail traders, said Khouw. Institutions were more active in the $180-strike puts.

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