Google's Class C shares are down for the month, but one trader has made a bet that they will rally after the company reports its first-quarter earnings after the bell Thursday.
Specifically, when call volume ran three times that of puts in the Google's Class C shares, a trader bought 1,800 contracts of the 575-strike calls expiring on May 15 at a price of $3.70 each. As each contract controls 100 shares, that means the trader is betting $666,000 that Google's Class C shares will trade above $578.70 by mid-May. That would be a gain of 7.3 percent from Wednesday's close. Calls are bullish wagers allowing purchasers the right to buy a stock at a given price by a set date.