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Expedia reported strong results yesterday afternoon, and one investor is positioned for some major profits.

optionMONSTER's Heat Seeker tracking system detected the purchase of 10,000 January 35 calls for $2.55 and $2.60 about halfway through the session. Those contracts lock in the price investors must pay to buy the stock, so they can deliver major leverage if the shares move in the right direction. (See our Education section)

So far, so good: The online travel company reported first-quarter profit of $0.22 on revenue of $816.5 million. Analysts had only expected $0.15 and $790.91 million respectively.

EXPE finished yesterday's session up 0.96 percent to $32.63 but was quoted at $38.74 in extended trading after the earnings report. If the gains hold this morning, those January calls will probably more than double to somewhere between $5 and $6.

The stock had rallied late last year and early this year but then pulled back and found support at its 100-day moving average. It's now poised to test its previous all-time highs from early 2008.

Overall option volume was 21 times greater than average in the session, with calls outnumbering puts by more than 12 to 1.

(A version of this post appeared on InsideOptions Pro yesterday.)

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