Large Call Trade in Waters Corp.

Pete Najarian, co-founder of OptionMonster

One large options trader is buying calls in Waters Corp.(WAT Quote), which manufactures and sells lab equipment for chemical analysis.

Options volume on Waters for the last month averages 552 contracts a day, but Tuesday more than 4,000 of the March 40 calls alone were bought by mid-afternoon, according to OptionMonster's tracking systems.

Shares of Waters, whose liquid chromatography products are used in health care, food safety, water quality, and other uses worldwide, closed Tuesday up 5.6% to $33.53. The stock will need to move quite a bit higher for the trade to profit, but then again it was over $40 as recently as early February.