Why Apple, Amazon Could See Big Upside After Earnings

Apple Inc AAPL and Amazon.com, Inc. AMZN are scheduled to report quarterly earnings on Thursday.

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that the options market is implying a move of about 3.8% after Apple reports earnings versus the average of 3.7% over the last eight quarters. The call buyers exceeded the put buyers, he added.

Check out other tech stocks making moves in the premarket.

The options market implied a bigger move in Amazon’s stock, Khouw said. Traders are betting that the stock will move 6.5% after the company reports earnings, he added.

AAPL, AMZN Price Action: Shares of Apple rose by 3.42% to settle at $ 156.79 on Wednesday, while Amazon’s stock climbed 5.37% to close at $120.97.