Trader Bets $1M On Meta Platforms Declining After Earnings Release

Meta Platforms Inc META is scheduled to report its quarterly earnings on Wednesday.

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that the options market is implying a move of about 11% after Meta Platforms reports earnings, versus the average of 8.7% over the last eight quarters.

Check out other tech stocks making moves in the premarket.

There was a trader who sold 1,500 of the July 29 weekly 147 strike puts and then bought the same amount of the 160 strike puts at an average price of $1.47 per contract, Khouw said. The trader is betting $1.1 million on a downside in Meta Platforms’s stock between now and August expiration, he added.

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META Price Action: Shares of Meta Platforms declined by 4.50% to settle at $159.15 on Tuesday.