This Options Expert Says Good Apple Earnings Could Push The NASDAQ Higher

Nic Chahine is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.

Nic Chahine, an options expert and manager of Create Income With Options spread discussed why Apple Inc. AAPL's upcoming earnings results could move the market. Chahine noted that Apple represents a "big box in the heatmap" within the Nasdaq index and if shares of Apple mimic Google Inc GOOG GOOGL surge following its earnings, Apple's stock holds the potential to "move the market." "If Apple has a fantastic day, like Google, it will move the Nasdaq all by itself," Chahine continued. "If Apple moves up 15 percent, the Qs [PowerShares QQQ Trust, Series 1 (ETF) QQQ] will be up two points all by itself. It's a beast to be reckoned with" However, the trading pro did caution investors not to buy an index outright, rather it is preferable to buy individual stocks, like Apple. Chahine explained that he typically initiates a position in an earnings play a month ahead of the print, and buying options in Apple for Tuesday's earnings report is no different. However, the majority of positions were closed out and sold, with most of the profit taken off the table. For traders looking to play Apple earnings, Chahine cautioned to use small positions, as he is doing. "From here on out, I have very small money invested and if Apple has a good breakout, I stand to profit nicely while I don't stand to lose much," he concluded.