Trader bets $1M on surge for this big box retailer

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As this week's earnings continue for the big box retailers, one trader is betting that one name in particular could surprise analysts.

The options market is implying a move of about about 3.25 percent in either direction for Wal-Mart when it reports earnings Thursday before the bell, almost a percent higher than the average move of about 2.6 percent.

Generally, the sentiment has been bearish for big box retailers such as Wal-Mart, but according to Mike Khouw of Optimize Advisors, the results could send shares higher.

"These are not names that are usually favored by the Street," Khouw said Tuesday on CNBC's "Fast Money." Nevertheless, with Target crushing third quarter earnings, Wal-Mart could be another name in the space to surprise.

One particularly bullish trade that Khouw noted was a buyer of 10,000 January 72.5-calls for $1.10 each. Since each call option accounts for 100 shares of stock, this is a $1.1 million bet that Wal-Mart shares will close at or above $73.60 by January expiration.

Analysts polled by FactSet are expecting Wal-Mart to report earnings of 96 cents per share on $11.86 billion in revenue.

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