Traders are going bananas for Chiquita Brands ahead of earnings.
CQB shares are up 2 percent Thursday, trading at $11.94, their highest level since Feb. 19, the day before its earnings report at the time. The price closed at $12.73 that day and $7.27 the next. They eventually got down to $4.32 before turning and have rallied since, now up almost 200 percent from there.
CNBC/ Trading School:
One option trader is clearly looking for further gains and for the stock to continue to fill the gap that was created on that drop. 's systems show 5,000 of the November 15 calls purchased, with the largest block of 4,500 snapped up for $0.85.
This volume is especially notable given that the 20-day average options turnover is just 176 contracts.
Clearly this trade is based on the idea that the response to earnings on Aug. 6 will be as significant in a bullish direction.
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Chris McKhann is an analyst and writer for .