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The $1 million bet that a solar stock hits new highs

Options Action: New high for First Solar?

Within the beaten-down space of solar stocks, one name has survived the past year's sell-off. And one trader is betting that the winning stock, First Solar, will reach a new high in less than two months.

On Wednesday, a trader bought 5,000 April 75-strike calls for $1.90 per share, betting $950,000 that First Solar's stock will rise above $76.90 by April expiration. The move would be a 12 percent spike from where the stock traded Thursday, and a 4 percent jump from its 52-week intraday high.

First Solar has gained almost 4 percent this year, while industry peers such as SunEdison and Solar City have fallen 60 and 50 percent, respectively.

Dan Nathan of RiskReversal.com said Wednesday that First Solar's stock is approaching a major level of resistance that has held over the last few years.

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"This trader is obviously playing for a new breakout," Nathan said Wednesday on CNBC's "Fast Money." "I suspect buying out-of-the-money calls like this is levering up an existing long position."

Nathan said that recently the stock's moves have been tied to the oil market: as crude prices rise, so will investment in alternative energy. While First Solar has seen some volatile earnings reports, he said sales are expected to increase by 20 percent this year.

"If you think oil's going to continue to go higher, a stock like this could continue to go higher," he said.