Traders Turn Very Bullish On Coinbase Into Earnings, Options Expert Says

Coinbase Global Inc COIN reports earnings after the market closes on Thursday.

On CNBC's "Options Action," Tony Zhang said the market is currently implying “a whopping 12.7% move on this earnings.” This compares to the 4.6% move over the past three quarters, he mentioned.

Zhang said the markets were also implying unusually high volatility until the end of this week. One trader was taking advantage of the volatility by selling nearly 600 of the February 25 weekly 175-puts at an average price of $9.40 per contract, he added.

“If the stock is below $175 by Friday, this trader has to buy $10 million worth of this stock. So, a fairly bullish bet on Coinbase going into the earnings event here,” Zhang said.