Traders bet on record Facebook highs

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Traders are liking Facebook.

Shares of the social media giant have rallied 17 percent in the last year, and the company now has a market cap worth 24 percent more than Disney. And on Tuesday, some options traders bet the stock will make record highs.

Call volume Tuesday was three times that of puts, and in the largest single trade on the name, someone bought 6,000 of the Facebook May 87.50 calls for $1.13 each. Since each contract is for 100 shares, the trader is betting $678,000 that Facebook will move above $88.63—9.4 percent higher than current levels—sometime over the next two months.

"This trader is playing for a massive breakout to the upside," said Dan Nathan, co-founder of RiskReversal.com and a CNBC contributor.