"The stock has been consolidating over the last couple of weeks since they made that acquisition, the $2.6 billion OpenTable acquisition offer, but all of a sudden the thing popped on the slightest bit of good news," he said.
Nathan said he was making a bet on Priceline's second-quarter earnings beating estimates and the stock recapturing its uptrend.
With Priceline at $1,245, Nathan recommended buying an August $1,300/$1,400 call spread for $20.
Follow Dan Nathan on Twitter: @RiskReversal
—By CNBC's Kristin Cwalinski