Whole Foods may not be the cheapest place to buy groceries, but some traders are betting that its stock is a bargain.
After rallying 54 percent from its October lows, shares of the organic food seller began selling off in recent weeks and are down 5 percent this month. However, on Wednesday, traders began making bets that the stock will break its 52-week high in the coming month.
Wednesday's call volume was three times its average. A lot of activity was centered on the April 17-expiry 55 strike calls, where some 5,000 contracts traded for roughly $1 each. That means about $500,000 was wagered that Whole Foods would trade above $56 per share, or 4 percent higher than Wednesday's close.
"We also saw some activity in the 57.5 calls," noted CNBC contributor Mike Khouw. "What's interesting to me is that Whole Foods isn't exactly loved by the Street and there aren't a lot of obvious catalysts between now and expiration."