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• Long-term bullish wager on MGM

• SWY 100% Rate It

Safeway reports earnings this week, and some traders are looking for a positive surprise.

optionMONSTER's Heat Seeker monitoring system detected the purchase of about 10,000 July 17 calls against open interest of 1,009 contracts. They initially priced for $0.20 but then traded for $0.15 after the supermarket stock pushed lower.

SWY is down 1.31 percent to $15.81 in afternoon trading and has lost more than one-quarter of its value in the last three months. It fell sharply last week after rival Supervalu announced poor results and said it would slash prices to win back customers.

SWY's earnings have also been weak as competitive pressures erode the company's market position. Its next set of quarterly results come out before the bell on Thursday.

Long calls give investors exposure to a potential rally with only a small amount of capital in the trade. (See our Education section for more on how options can be used to limit risk.)

Calls outnumber puts in the name by 10 to 1 so far in the session. Total option volume is more than quadruple the daily average, according to Heat Seeker.

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