Salesforce.com reports earnings after the bell on Wednesday, and some traders are betting the stock will rise, well, to the clouds.
On Tuesday, options on the cloud-computing giant were implying the stock will move 10 percent after earnings are released. That's slightly higher than the 7 percent average post-earnings move in either direction over the past four quarters.
One trade that stood out was the purchase of 3,000 80-strike calls expiring in June for $1.70 each. As each contact controls 100 shares, the trader is betting $510,000 that Salesforce.com will trade above $81.70 or 14 percent higher in the next month. A call is a bullish wager giving the purchaser the right to buy a stock at a set price within a given time frame.