Is There Upside To Apple Shares On Earnings?

On CNBC's "Options Action," Tony Zhang said the market is implying a 5.3% move in Apple Inc’s (NASDAQ: AAPL) stock, which is substantially higher than the 3.2% move over the last eight quarters.

There was a seller of 9,998 of the January 28 weekly 145-puts for an average price of 34 cents per contract, Zhang mentioned. There was a seller of 4,999 of the 150-puts for an average price of 67 cents per contract, while another 4,999 of the 140 puts were sold for 19 cents per contract.

The trader collects “around $770,000 in premium, betting that the stock will be above $140 by expiration [on Friday], but if it is below $140, he has $290 million of stock purchase obligation,” Zhang said. “[This is] a sizable bet that Apple will stay around these levels going into earnings,” he added.