Dillard's has pulled back after a big rally, but the bulls are looking for the gains to continue.

optionMONSTER's Heat Seeker monitoring program detected the purchase of 1,000 February 82.50 calls for $1.60. An equal number of February 80 puts were sold at the same time for $1.50, resulting in a net cost of $0.10.

If DDS climbs in the next four weeks, the long calls will likely appreciate in value while the short puts dwindle. The opposite will occur if the shares fall, so the position is similar to owning shares. (See our Education section)

The main difference is that this combination trade will expire worthless if the retailer remains between $80 and $82.50 on Feb. 15. If the stock drops below $80, the trader will be obligated to buy shares for that price.

DDS rose 0.72 percent to $82.07 on Friday and has risen more than 15-fold since early 2009 amid a continuous stream of strong earnings. The investor may also expect support around that key $80 level because it's roughly where the shares peaked in September, and it is the location of the stock's 100-day moving average.

Total option volume was 4 times greater than average in the session, according to the Heat Seeker.

More From optionMONSTER

• Trader thinks Marathon isn't tired yet
  

• Call buyers are playing for gains in Glu
  

• Patterson UTI gets vote of confidence