Trader bets on slam dunk for Time Warner

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Options Action: Bullish bet on Time Warner

Time Warner shares are just about flat after the company beat expectations. But one trader is hoping the stock will rally in the next few days.

Shares in the media giant are up 6 percent over the last three months. Even before It reported better-than-expected profit helped by Turner Sports' "March Madness" coverage, traders were looking forward to a slam dunk.

On Tuesday, bullish bets in the options market outpaced bearish ones by a ratio of 10-to-1. According to options expert Mike Khouw, that was in anticipation of a post-earnings rally.

"This is a name that typically moves a little under 3 percent on earnings," said Khouw, a CNBC contributor. Meanwhile, the options market was "implying that it [was] going to move a little bit more than that."

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