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Traders bet that this Dow outperformer will pop before the end of the year

Key Points
  • Traders are betting that Microsoft moves higher before the end of the year.
  • On Thursday investors bought more than 13,000 calls at the December 103 strike price, according to Investitute co-founder and "Halftime Report" contributor Pete Najarian.
  • Microsoft is up more than 18% this year, and is one of only five Dow components set to end the year with a double-digit gain.

Stocks losses accelerated on Thursday with the Nasdaq dipping into bear market territory.

But traders are betting that there's upside ahead for one tech stalwart.

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Traders make bullish bets on Microsoft

On Thursday investors bought more than 13,000 Microsoft calls at the December 103 strike price, according to Investitute co-founder Pete Najarian. These particular calls expire on December 28th, so it's a very short term bet that the stock moves higher before the end of the year.

The Washington-based company is the Dow's second-best performer this year, and it's one of only 5 components on pace to end the year with a double-digit gain.

Microsoft trades at 22.9X next year's earnings, and yields 1.81%.

Disclosure: Pete Najarian owns Microsoft.