Mike Khouw spoke on CNBC's "Options Action" about unusual options activity in Netflix Inc (NASDAQ: NFLX), ahead of earnings.

The company is scheduled to report earnings on Tuesday, after the bell, and the options market is implying a move of almost 13% by the end of the week.

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Calls outnumbered puts 3 to 1 on Monday and one of the trades that caught Khouw's attention was a purchase of 462 contracts of the June $475 calls for $25. The buyer is betting around $1.15 million that the stock is going to jump above $500 or more than 14% above the Monday's closing price, by the end of the week

The stock traded up about 1.6% to $444.75 per share on Tuesday morning.