Apple Inc AAPL is scheduled to report its fiscal fourth-quarter results after the closing bell on Thursday.
On CNBC's "Options Action," Mike Khouw said that Wednesday trading saw calls outpacing puts by 2-to-1, which has been the average over the past 20 days.
Options trading implies the stock will move around 3% by the end of the week, Khouw said. Some traders took advantage of the low options premiums.
He said one institutional buyer had purchased 1,000 Nov. 26 weekly 150 strike calls at $3.35. The trade will break even if Apple’s stock rises by 2.8% over the next month.
The consensus estimates for the quarter call for revenues of $84.9 billion and earnings of 73 cents per share. Markets widely consider the estimates as conservative and expect the iPhone maker to significantly beat them.
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