Is this a red flag?

So I've been talking to this guy I met off of a dating website and at first the conversation was great. He expressed how he liked me and wanted to move forward. We talked on the phone. For about two hours last night and he asked me what would I do if he was laying in the bed with just boxers on. I was very hesitant to say anything and paused. Then he say I would want you to come lay with me and put your hand in my boxers. I instantly got turned off and hung up in his face. I met him two days ago and he's already talking about sex, should I give him another chance or let him go?