This brings Teva's total open interest to 1.6 million contracts.

Teva Pharmaceutical Industries Ltd. (TEVA - Get Report) is on track for a turnaround, and investors have placed their bets.

The volume of Teva options contracts has jumped to a daily average of more than 100,000 this month, according to data from Bloomberg.

That brings the total open interest to 1.6 million contracts, more than both Pfizer Inc. (PFE - Get Report) and Merck & Co. (MRK - Get Report) combined.

The surge in options trades comes as Teva announced Thursday, Dec. 14, that it will slash a quarter of its global workforce - about 14,000 employees - as part of a cost cutting plan aimed at reducing the generic drug maker's cost base by $3 billion by the end of 2019. Also on Thursday, Teva decided to suspend its dividend.

Shares of the Israeli company gained 10.7% to $17.37 mid-afternoon Thursday.

More of What's Trending on TheStreet: