As tech giant Apple soars to new highs, options traders are betting the rally is far from over.
Apple shares are up more than 14 percent this year, and now within $50 billion of hitting the $1 trillion market cap milestone. According to "Options Action" trader Mike Khouw, the tech giant could be gearing up for even bigger gains.
"The bullish flow in Apple options has continued," Khouw said Tuesday on CNBC's "Fast Money."
He noted that several traders on Tuesday were targeting the 195 call options, paying an average of $6.10 per options contract.
"This is a bet that [Apple is] going to be above $201.10 by August expiration," he said. At the current share count, Apple would need to trade around $203.45 to hit $1 trillion market cap.
Shares of Apple hit a fresh all-time high this week following its annual Worldwide Developers Conference. The gains also helping to lift the tech-heavy Nasdaq composite to a new high.
Shares of Apple were trading slightly lower early Wednesday afternoon, around $193.