On CNBC’s “Options Action,” Mike Khouw spoke about unusually high options activity in Applied Materials, Inc. (NASDAQ:AMAT) ahead of the earnings report, which is scheduled for Thursday after the market close.
The options market is implying a move of 4.8% in either direction, which is slightly higher than the average move of 4.2% over the last eight quarters. Calls outpaced puts by about 1.6 to 1 on Wednesday as around 1,800 contracts of the May $127 calls were traded for $1.16. The trade breaks even at $128.16 or 2.69% above the closing price on Wednesday.
