Facebook just hit a new high, and it could break out more after earnings this week

VIDEO2:0602:06
Facebook hits fresh all-time high and some traders are betting on more

As Facebook soars to new highs, some traders are betting on even more gains when the social media company reports earnings this week.

Shares of the tech giant were rallying Tuesday, notching a new all-time intraday high. The stock is now up more than 40 percent from its lows during the Cambridge Analytica scandal in March.

According to “Options Action” trader Mike Khouw, the stock could be poised for an even bigger breakout when it reports after the bell on Wednesday.

The options market is implying a near 6 percent move in either direction for Facebook on its latest quarterly results. Although the expected shift is smaller than the stock’s historical average on earnings, Khouw believes it’s “not surprising given the market cap of [Facebook] is over $600 billion.”

On Monday, Khouw also highlighted a block of traders who purchased the 215/220 call spread in Facebook for about $1.75.

“So that suggests the options market is implying [the] 5.5 percent move is going to be to the upside,” he said on CNBC’s “Fast Money” “[They’re] targeting that 220 or higher price by the end of the week.”

Facebook was up Tuesday afternoon, trading at around $213.60.