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Gap has been on a tear, and one trader is betting that it still has more room to run.

optionMONSTER's Heat Seeker tracking system detected the purchase of about 8,400 August 30 calls for $0.86 to $0.90 against open interest of 2,010 contracts. Some 5,100 August 28 calls were sold around the same time for about $1.99, but volume was below open interest at that strike.

This suggests that the investor had previously owned the August 28 calls and is now rolling the position to a higher strike. The trader collected $275,000 in the process, possibly recovering the original investment while remaining exposed to further upside. He or she also increased the number of contracts owned, which will enhance leverage in the event of a rally.

There are at least two potential catalysts that could drive the retail stock before expiration: July same-store sales on Aug. 2 and second-quarter earnings results on Aug. 16.

GPS rose 1.24 percent to $29.48 yesterday. The retailer is already up more than 50 percent since early January and has returned to prices last seen in mid-2001. Its financials have been improving in the last year as new merchandise halts a long-running customer exodus.

Overall option volume was triple the daily average in the session, with calls outnumbering puts by 38 to 1.

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