Will Apple Or Microsoft Trade Higher Following Earnings?

Apple Inc AAPL and Microsoft Corp MSFT are set to report second-quarter financial results after the market closes Tuesday. 

Recent options activity shows that traders are expecting more upside for the pair of tech stocks following the reports, Market Rebellion co-founder Jon Najarian said Tuesday on CNBC's "Fast Money Halftime Report."

There is upside call option speculation in Apple all the way up to the $180 strike, Najarian said. There is not much put option buying in Apple.

Related Link: Unusual Options Activity Insight: Microsoft

Microsoft could be the stock to outperform following earnings, Najarian suggested. He's not seeing the same level of call buying activity in Microsoft that he is seeing in Apple.

Najarian said Microsoft could pop more than Apple because the anticipated move is not as high. 

Price Action: Apple is up 10.06% year-to-date, while Microsoft is up 27.64% year-to-date.

At last check Tuesday, Apple was down 1.95% at $146.08 and Microsoft was down 1.76% at $283.96.

Photo: courtesy of Microsoft.