Apple Inc. AAPL reports earnings on Thursday after the bell and Mike Khouw said on CNBC's "Options Action" that the options market is implying a move of over 6% in either direction, which is larger than the average move of just over 5% over the last eight quarters.
Although the sentiment was mixed during the session on Wednesday, the most active options were the May 1, weekly, $280 strike puts, said Khouw. Traders were paying $3.12 for them, which sets the break even for the trade at $276.88 or 6.55% below the closing price on Wednesday.
Related Links:
Apple Earnings Ahead: Rough Quarter, iPhone Expectations And Getting Back To Business
How Large Apple Option Traders Are Positioning Ahead Of Earnings
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