Myriad Genetics is up sharply since reporting a strong quarter last week, and traders are betting on more gains ahead.

Nearly 4,000 August 33 calls traded in a strong buying pattern this morning, led by a print of 3,001 contracts that went for $3.75, according to optionMONSTER's Heat Seeker system. These are clearly fresh purchases, as the volume was well above the strike's open interest of 1,656 contracts before the session began.

MYGN is up fractionally at $33.19 in midday trading. The shares gapped up from the $28 level after the medical-diagnostics company posted earnings and revenues estimates while raising guidance last Tuesday.

Today's long calls , which lock in the price where the stock can be bought no matter how far it might rise, are looking for MYGN to rally roughly 11 percent or more by expiration in mid-August. But these calls, which will track the share price closely because they are already in the money , will rapidly lose value if the stock doesn't rise. (See our Education section)

Overall option volume in the name today is already almost 6 times its full-session average. Calls outnumber puts by 16 go 1, a reflection of the bullish sentiment.

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Bulls show faith in Myriad Genetics

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