Shares of Autodesk climbed more than 1 percent higher on Monday and traders are making a big bet on the software company ahead of its second-quarter earnings report on Thursday.
The calls expire on August 24, so as long as the stock trades above $134 by then, investors can exercise their right to buy the stock and collect a profit (minus their cost to purchase the option).
Autodesk shares have rallied this year, outperforming the broader market – the stock is up more than 27 percent year-to-date, compared to the S&P 500's nearly 7 percent gain over the same time period.
The company is expected to report second-quarter results after the closing bell this Thursday. Analysts are expecting earnings per share of 16 cents on revenues of $600 million.
Separately, options traders are also betting on Range Resources - purchasing more than 2,500 calls at the December 16 strike price. The energy company, which has fallen more than 12 percent so far this year, is expected to report earnings after the closing bell on August 30th.
Jon Najarian owns Autodesk calls and Range Resources calls.