Activision Blizzard has lost half its value in just four months, but traders are betting big on the stock ahead of next week's earnings. Shares of the video-gaming giant slid just over 10 percent during Wednesday's session after competitors Electronic Arts and Take-Two Interactive posted disappointing earnings. But investors are betting the quarter might have been a better one for Activision Blizzard, which reports next Tuesday after the close. On Wednesday traders bought more than 16,000 Activision Blizzard calls at the February 46 strike price, according to Investitute co-founder Jon Najarian.

These particular calls expire next Friday, so traders are betting the stock will bounce 7 percent by then. (Activision Blizzard closed at $43 on Wednesday.) The video-gaming giants have been hit hard in the past year as they struggle to compete with free-to-play games like the very popular Fortnite. Take-Two is down 21 percent in the last year, with Electronic Arts and Activision Blizzard falling 35 percent and 38 percent respectively. While traders may be betting on a short-term pop, Aureus Asset Management's Karen Firestone believes these are not good stocks to own for the long-term. "We used to be a big fan of Electronic Arts and we're not now," she said Wednesday on CNBC's "Halftime Report." "We saw the writing on the wall to the extent that it's become a hit-driven game, and when it was two companies that controlled the hits that was fine if they were Activision and EA. And now you've got new companies like Fortnite … I think it's extremely hard for these guys to compete now in the way they used to," she added.