Traders are betting on this Dow component

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Options Action: Coke shares to pop?

Like many other companies, Coca-Cola has been struggling with the strengthening dollar. But one options trader is betting on a pop in the soft drink giant.

On Monday, with no particular catalysts, traders placed a flurry of bullish bets on Coke. Calls outpaced puts by a margin of 6 to 1, and one trader bought 7,000 of the Coke April 41 calls for 59 cents each. Since each contract is for 100 shares, the trader is betting $413,000 that Coke will break above $41.59—3 percent higher than Monday's close—within a month from now.

"That is making a bet that this stock is going to recover a bit," said Dan Nathan, founder of RiskReversal.com and a CNBC contributor.