Mike Khouw's Tesla Trade

Mike Khouw spoke on CNBC's "Options Action" about high options volume in Tesla Inc TSLA. He said that it was one of the top 10 most active single stock options Tuesday.

He noticed that options traders were buying the November 320 calls. Over 13,500 contracts were traded for $1.35. The trade breaks even at $321.35 or 1.11 percent higher. Khouw added that he owns 285 strike puts in the name and he bought 325 strike call as a stop.