Shares of NetApp have had a rough year, but some traders are betting on a rally ahead.
After falling nearly 14 percent since the start of 2015, shares of the tech company saw a modest 1 percent gain on Thursday. But trades in the options market suggest some market participants expect a significant bounce in the stock over the next three months.
Thursday's call volume was 18 times its average. A lot of activity was centered on the June 40-strike calls, where a total 10,297 contracts traded for an average price of around 35 cents each. Since each contract controls 100 shares, that means roughly $360,000 was risked in the hope that NetApp shares would trade above $40.35, or 13 percent higher than Thursday's close, by June 19.
A call is a bullish wager that gives the purchaser the right to buy a stock at a given price within a set time period.