Is There More Pain Ahead For Applied Materials Stock?

Applied Materials Inc. AMAT is scheduled to report its third-quarter earnings on Thursday.

On CNBC's "Options Action," Tony Zhang of Options Play said that Applied Materials traded more than 1.7 times its average daily volume on Wednesday. The options market is implying a move of 4.75% going into earnings, versus the 3.6% over the last three quarters, he added.

Check out other stocks making moves in the premarket.

There were buyers of 200 contracts of the August-19 weekly 104 puts at an average price of $2.03 per contract, Zhang mentioned. Traders see shares of Applied Materials falling after the company reports earnings.

AMAT Price Action: Shares of Applied Materials declined 2.30% to settle at $106 on Wednesday.