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Trader bets on big comeback for this energy stock

After a dramatic plunge, Halliburton shares have bounced well above Wednesday's lows. And one options trader is betting that the momentum will continue.

In Thursday's biggest Halliburton options trade, a firm bought 4,000 November 62.50-strike calls for 40 cents. Since a call gives its owner the right to buy a given stock at a given price and time, this trade will be profitable as long as Halliburton shares rise above $62.50 by more than the cost of the calls—or above $62.90 by November expiration.

Read MoreDespite washout, hedge funds not bailing on energy

It's been a rough ride for Halliburton shares recently. As oil prices have cratered, the company's shares lost as much as 25 percent from the beginning of October to their bottom on Wednesday, before bouncing back.

And in fact, as Halliburton shares have slid, so has the value of that call option. Worth about $4 on the last day of September, it was purchased for a tenth of that 12 sessions later.

"Giving yourself almost 40 days for that to play out, especially given where this stock has come from, might be a cheap way to make a bullish bet here," Mike Khouw of Dash Financial said Thursday on CNBC's "Fast Money."

Halliburton is set to report third-quarter earnings on Monday before the bell.


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